Morgan Stanley Told to Face MetLife MBS SuitChris Dolmetsch
Morgan Stanley was ordered by a New York judge to face a suit by MetLife Inc., the largest U.S. life insurer, over $758 million in residential mortgage-backed securities.
Justice Eileen Bransten in state Supreme Court in Manhattan denied New York-based Morgan Stanley’s motion to dismiss MetLife’s claims of fraud, fraudulent inducement and aiding and abetting fraud. The July 8 ruling was made public today.
MetLife, based in New York, sued Morgan Stanley in April 2012, accusing the investment bank of fraud and other claims involving in residential mortgage-backed securities purchased in nine offerings in 2006 and 2007.
Morgan Stanley didn’t immediately respond to an e-mail seeking comment on the ruling.
The case is Metropolitan Life Insurance Co. v. Morgan Stanley, 651360/2012, New York State Supreme Court, New York County (Manhattan).