IKB Sues Morgan Stanley Over $147 Million in Bonds
Morgan Stanley (MS) was sued by IKB Deutsche Industriebank AG (IKB) over claims the investment bank hid the truth about $147.1 million in residential mortgage-backed securities it sold to the German company.
IKB, based in Dusseldorf, said in a summons filed today in New York state court in Manhattan that the offering materials for the securities contained misrepresentations and omissions about the underwriting standards used for the underlying home loans, as well as regarding the loan-to-value ratios of the loans.
Mark Lake, a spokesman for New York-based Morgan Stanley, declined to comment on the lawsuit.
The case is IKB International v. Morgan Stanley, 653964/2012, New York State Supreme Court, County of New York.
To contact the reporter on this story: Edvard Pettersson in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Hytha at email@example.com