Morgan Stanley’s Motion to Dismiss $757 Million RMBS Suit Denied in Part

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On July 13, Justice Eileen Bransten of the New York Supreme Court denied Morgan Stanley’s motion to dismiss MetLife’s common law fraud and fraudulent inducement claims. MetLife alleges that Morgan Stanley knowingly misrepresented the quality of over $757 million RMBS that it underwrote or sponsored. The court held that MetLife sufficiently alleged reasonable reliance, a material misrepresentation, scienter and loss causation. However, Justice Bransten granted the motion to dismiss as to claims brought by the Connecticut subsidiary of MetLife, finding the claims barred by Connecticut’s three-year statute of repose for fraud claims. Decision.

Topics:  Fraudulent Inducement, MetLife, Morgan Stanley, Motion to Dismiss, RMBS

Published In: Business Torts Updates, Civil Procedure Updates, Finance & Banking Updates, Insurance Updates, Residential Real Estate Updates

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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