On April 17, Justice Eileen Bransten of the Supreme Court of the State of New York dismissed all claims in a suit brought by investment vehicle Sealink Funding Ltd. in connection with RMBS purchased from Morgan Stanley. Sealink acquired the certificates at issue from Sachsen LP Europe Plc and brought claims for fraud, fraudulent inducement, and aiding and abetting fraud. Sealink alleges misstatements by Morgan Stanley regarding the due diligence and underwriting performed on the mortgages underlying the securities, misstatements of loan-to-value and debt-to-income ratios and misstatements concerning the risks of RMBS generally. The court held that under governing English law, Sachsen’s tort claims could only be transferred to Sealink by explicit reference in the agreements transferring the securities. Finding no such transfer provision, the court dismissed Sealink’s claims. Decision.