IKB Files Suit Against Morgan Stanley Over $147M in RMBS


On November 16, German lender IKB Deutsche Industriebank AG sued Morgan Stanley and related entities in the Supreme Court for the State of New York for $147 million in connection with the sale of RMBS. IKB alleges Morgan Stanley issued offering documents that contained material misrepresentations and omissions regarding the underwriting standards and credit characteristics of the loans underlying the securities, the legal validity of the trusts and the transfer of loans to the trust, and the credit ratings of the securities. IKB brings causes of action against Morgan Stanley for common-law fraud, fraudulent inducement, fraudulent concealment, negligent misrepresentations, aiding and abetting fraud, declaratory judgment, and contract claims, including rescission, restitution and mutual mistake. Summons with Notice.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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