Appeals Court Revives RMBS Claims Against Morgan Stanley
By Brandon Lowrey (August 11, 2016, 8:49 PM EDT) -- A New York appellate court on Thursday revived breach-of-contract and negligence claims brought against financial giant Morgan Stanley by a trust over nearly $111 million in losses suffered by investors in residential mortgage-backed securities, saying a lower court erred in throwing out the allegations at the pleadings stage.
The appellate court's opinion cited its January ruling in a similar case, Nomura Home Equity Loan Inc. v. Nomura Credit & Capital Inc., saying the allegations sufficiently supported the claims.
"Defendant's alleged breach of its contractual duty to notify the trustee of defective loans gives rise to an independent, separate claim for breach...
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