NEW YORK CITY (dpa-AFX) - Morgan Stanley (MS) disclosed in a regulatory filing that on January 13, 2015, the New York Attorney General's Office or 'NYAG' indicated that it intends to file a lawsuit related to approximately 30 subprime securitizations sponsored by the Company.
NYAG indicated that the lawsuit would allege that the Company misrepresented or omitted material information related to the due diligence, underwriting and valuation of the loans in the securitizations and the properties securing them and indicated that its lawsuit would be brought under the Martin Act. The Company does not agree with NYAG's allegations and has presented defenses to them to NYAG.
On February 25, 2015, the Company reached an agreement in principle with the United States Department of Justice, Civil Division and the United States Attorney's Office for the Northern District of California, Civil Division to pay $2.6 billion to resolve certain claims that the Civil Division indicated it intended to bring against the Company.
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