Morgan Stanley Exits Muni Derivatives Suits For $6.5M

Law360, New York (November 23, 2011, 5:07 PM EST) -- Morgan Stanley agreed Wednesday to pay $6.5 million to settle out of dozens of class actions consolidated in New York federal court alleging it, Bank of America NA and others conspired to fix prices and rig bids for municipal derivatives.

The bank became the first defendant to successfully settle out of the multidistrict litigation, brought by municipalities alleging about 20 financial institutions manipulated the prices of the instruments in violation of the Sherman Act.

“The settlement was attained following an extensive investigation of the facts,” U.S....
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