Boston, MA 09/09/2014 (wallstreetpr) – It’s not that old when Bank of America Corp (NYSE:BAC) was asked to pay around $16.53 billion to settle the claims that were levied on it in regard with its role in U.S. mortgage-debt case. After a few days of that incident, 12 banks were put in scrutiny in relation with their role in that case that ultimately led to the financial crisis in 2008. Now reports have revealed that Morgan Stanley (NYSE:MS), which was one of those 12 financial institutions has decided to pay $95 million to settle all the claims levied on it in U.S. mortgage-debt case. MS was accused of misleading investors for buying mortgage-backed securities.
The road so far
The company has decided to pay a huge amount to settle the lawsuit that was filed for its rumored role in misleading statements over the soured securities. As per the reports, the plaintiffs accused Morgan Stanley (NYSE:MS) of violating securities law of the country in selling and packaging mortgage-backed securities to investors. There were total 13 offerings made by the company in 2006 and 16 offerings in year 2007. When the litigation against the company took place in 2008, U.S. District Judge Laura Taylor Swain dismissed all the claims against the company due to lack of time and standings.
Morgan Stanley (NYSE:MS) announced in the previous month that it had decided to enter into agreements to settle three lawsuits that were filed against it in New York. The company decided to boost its provisions for legal expenses by as much as $53 million in relation with those lawsuits and settlements. MS representatives denied commenting on the question of any wrongdoing committed by it in the past. No spokesperson of MS answered reporters on the questions related to the settlement and its role in any wrongdoings. Lawyers for the plaintiff said that they would also look forward to receiving fee award of 17% of the settlement.
