Morgan Stanley Can't Derail MBS Class Action

Law360, New York (July 16, 2012, 6:44 PM EDT) -- A New York federal judge on Monday refused to throw out a proposed class action alleging Morgan Stanley & Co. Inc. misled institutional investors by hawking shabby mortgage-backed securities that plummeted in value, rejecting arguments the lawsuit wasn’t filed quickly enough.

The company argued the case should be dismissed because it wasn’t filed soon enough to comply with the Securities Act, which requires certain complaints to be brought within one year of investors learning about potentially deceptive practices.

The lawsuit was filed in December 2008, and...
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