UK Firm Sues Morgan Stanley, Citigroup Over MBS

Law360, New York (July 12, 2010, 12:52 PM EDT) -- A U.K.-based investment management firm has sued 15 Wall Street banks including Morgan Stanley & Co. Inc., Citigroup Global Markets Inc. and Credit Suisse Securities USA LLC over $2.4 billion in mortgage-backed securities that fell apart.

As a result of the defendants’ untrue statements and omissions of material fact, Cambridge Place Investment Management Inc. has incurred losses exceeding $1.2 billion, the investment firm said in its lawsuit filed Friday in the Massachusetts Superior Court.

“Each of the defendants offered to sell and sold securities backed by...
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