Morgan Stanley Sued Over $140 Million in RMBS

Explore:  Morgan Stanley RMBS

On August 29, Bank Hapoalim B.M. filed a summons with notice in New York state court against four Morgan Stanley entities. Bank Hapoalim alleges that offering materials accompanying the sale of eight RMBS purchased for a total of $140,507,000 between September 2006 and July 2007 contained fraudulent misrepresentations that induced the purchases. Bank Hapoalim brings claims for violation of the Securities Act, common law fraud, aiding and abetting fraud, negligent misrepresentation, and breach of contract. In particular, Bank Hapoalim alleges that the defendants made material misrepresentations and omissions concerning the underlying guidelines used to originate the loans, the statistical characteristics of the loans, including loan-to-value ratios, combined loan-to-value ratios, and owner-occupancy status, the legal validity of the trusts and their entitlement to receive payments on the loans, and the credit ratings assigned to the RMBS. Summons.

Written by:

Published In:

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.

© Orrick - Structured Finance Group | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.