Discover, Morgan Stanley Spar On Settlement Payout

Law360, New York (October 28, 2008, 12:00 AM EDT) -- Discover Financial Services Inc. is accusing former parent Morgan Stanley of breaching an agreement that would entitle Morgan Stanley to $1.2 billion of an antitrust settlement the credit card issuer reached with Visa USA Inc. and MasterCard Inc.

Discover owes the financial services firm a portion of the $2.75 billion settlement under an agreement the parties reached in 2007 when Morgan Stanley spun off the credit card business, but the card-issuer said the amount is “a matter of dispute.”

Under the agreement, Discover is required to...
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