Morgan Stanley Must Face Borrowers' Mortgage Bias Suit

Law360, New York (July 26, 2013, 2:58 PM EDT) -- A federal judge on Thursday largely allowed a purported class action alleging that Morgan Stanley pushed a defunct subprime lender to give risky loans to black Detroit borrowers and profited off the securitization of those loans to move forward.

Judge Harold Baer of federal district court in Manhattan ruled that the Michigan borrowers' disparate impact claims under the Fair Housing Act, filed by the American Civil Liberties Union, survived both Morgan Stanley's claims that they were time-barred and that the borrowers did not have standing to...
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