ABP sues Morgan Stanley over firm’s residential mortgage-backed securities
By Bloomberg | November 29, 2012 2:57 pm
Stichting Pensioenfonds ABP, Heerlen, Netherlands, filed a fraud suit against Morgan Stanley (MS), claiming the firm made “false and misleading” statements about its residential mortgage-backed securities.
The €274 billion ($355.3 billion) pension filed the suit Tuesday in New York State Supreme Court in Manhattan, saying it suffered unspecified “substantial” damages.
“ABP purchased securities that were far riskier than had been represented, backed by mortgage loans worth significantly less than had been represented, and that had been made to borrowers who were much less creditworthy than had been represented, and at prices far in excess of the true value of the certificates,” ABP said in its 125-page complaint.
Mark Lake, a Morgan Stanley spokesman, declined to comment on the lawsuit.