Morgan Stanley Can't Shake Suit Over $81M Loan

Law360, New York (June 28, 2011, 2:06 PM EDT) -- Morgan Stanley on Monday failed in its bid to have tossed a breach of contract suit in New York alleging it hid environmental risks associated with an $81 million mortgage loan the financial giant later sold to investors.

U.S. District Judge Colleen McMahon brushed aside Morgan Stanley Mortgage Capital Inc.’s motion to dismiss the case, finding little merit to the defendant’s contention that it disclosed potential contamination at a shopping center and was not required to repurchase an $81 million loan it subsequently sold and deposited...
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