Mass. Wrings Another Deal Out Of ARS Saga

Law360, New York (August 7, 2008, 12:00 AM EDT) -- On the heels of UBS AG's $35M payout, Morgan Stanley has agreed to hand over $1.5 million to the commonwealth of Massachusetts to put to rest allegations that the financial giant hoodwinked the state into investing in auction rate securities.

On Thursday, Massachusetts Attorney General Martha Coakley revealed the settlement, punishment for Morgan Stanley's having led a pair of municipalities to believe that auction rate securities were an appropriate investment when in fact the opposite was true.

“We appreciate Morgan’s cooperation and are pleased that it...
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