Pursuits
Morgan Stanley Accused by California of False Subprime Pitch
- Attorney General Kamala Harris sues over mortgage securities
- Morgan Stanley says lawsuit has no merit, will fight it
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California sued Morgan Stanley over claims it misrepresented “complex investments” sold to the state’s employee pension funds, including the type of subprime mortgage-backed
securities that led to the global financial crisis.
Attorney General Kamala Harris alleges that Morgan Stanley violated at least three California laws by “concealing or understating the risks of intricate investments involving large numbers of underlying loans and other assets.”