Judge Tosses Morgan Stanley MBS Suit For Now

Law360, New York (September 15, 2011, 6:56 PM EDT) -- A New York federal judge on Thursday tentatively dismissed a putative class action against Morgan Stanley & Co. over mortgage-backed securities, finding the plaintiffs hadn't proven the bank was obligated to disclose flaws in its products' investment ratings.

U.S. District Judge Laura Taylor Swain did leave room for the plaintiffs to replead their claims. But she ruled that they didn't file the complaint in time to meet regulatory requirements and didn't prove that Morgan Stanley had a legal obligation to disclose the risky nature of subprime...
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