Discover, Morgan Stanley Spar Over $2.75B Payout

Law360, New York (December 5, 2008, 12:00 AM EST) -- Discover Financial Services has accused former parent company Morgan Stanley of secretly negotiating with Visa Inc. and MasterCard Inc. and undermining Discover's interests in the period before the four companies settled an antitrust suit for $2.75 billion.

In a counterclaim filed Nov. 18 with the New York State Supreme Court, Discover said that it decided to settle the suit only because Morgan Stanley had stripped away its leverage by speaking with Visa and MasterCard and by possibly giving away confidential information.

Morgan Stanley contends that it...
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