Morgan Stanley Faces Sealink Suit Over $556M In RMBS

Law360, New York (January 23, 2012, 11:05 PM EST) -- Morgan Stanley & Co. Inc. was hit with a lawsuit Friday by Ireland-based Sealink Funding Ltd. accusing Morgan Stanley for concealing the low quality of $556 million in residential mortgage-backed securities it sold Sealink before they plummeted in value during the 2008 mortgage crisis.

In its complaint filed in New York state court, Sealink claimed that it bought the RMBS in 11 offerings from 2006 to 2007, relying on Morgan Stanley’s assurances that it had conducted due diligence on the mortgages backing the securities and that...
To view the full article, register now.