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Morgan Stanley Capital I Inc. : Mortgage Pass-Through Certificates Summary: The class action was originally filed in the Orange County Superior Court and removed to the U.S. District Court for the Central District of California on December 31, 2008.
The complaint charges Morgan Stanley Capital and certain of its officers and directors, the issuers and underwriters of the Certificates and the rating agencies that rated the Certificates with violations of the Securities Act of 1933. Morgan Stanley Capital is engaged in the securitization of loans and the business of acting as depositor of trusts that issue series of certificates that represent interests in the assets of the trust.
The complaint alleges that on December 23, 2005 (with amendments on February 17, 2006 and March 14, 2006), Morgan Stanley Capital and the defendant issuers caused the Registration Statement to be filed with the SEC in connection with the issuance of billions of dollars of Certificates. The Certificates were supported by large pools of mortgage loans. The Registration Statement discussed the underwriting standards purportedly used in connection with the underwriting of the underlying mortgage loans and included numerous representations about the loan-to-value ratios used to qualify borrowers, the appraisals of properties underlying the mortgages and the maximum debt-to-income ratios permitted on the mortgage loans.
According to the complaint, the Registration Statement omitted and/or misrepresented the fact that the sellers of the underlying mortgages to Morgan Stanley Capital were issuing many of the mortgage loans to borrowers who: (i) did not meet the prudent or maximum debt-to-income ratio purportedly required by the lender; (ii) did not provide adequate documentation to support the income and assets required for the lenders to approve and fund the mortgage loans pursuant to the lenders’ own guidelines; (iii) were steered to stated income/asset and low documentation mortgage loans by lenders, lenders’ correspondents or lenders’ agents, such as mortgage brokers, because the borrowers could not qualify for mortgage loans that required full documentation; and (iv) did not have the income required by the lenders’ own guidelines to afford the required mortgage payments which resulted in a mismatch between the amount loaned to the borrower and the capacity of the borrower.
On January 30, 2009, the plaintiffs moved to remand to case back to the Orange County Superior Court filed, but the defendants moved to transfer the case to the U.S. District Court for the Southern District of New York. On March 6, 2009, Judge Mariana R. Pfaelzer granted the motion to transfer the case to the Southern District of New York.
On July 17, 2009, Judge Laura Taylor Swain issued the order consolidating two related class actions under In re Morgan Stanley Mortgage Pass-Through Certificates Litigation, Master File No. 09 Civ. 2137 (LTS)(MHD). Judge Swain also approved the West Virginia Investment Management Board as lead plaintiff and Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. On September 15, 2009, the lead plaintiff filed a Consolidated Amended Complaint.
On November 12, 2009, the defendants filed a Notice of Voluntary Dismissal. According to the Notice, the action is voluntarily dismissed, without prejudice against the various named Morgan Stanley Mortgage Loan Trust defendants. On November 16, 2009, the remaining defendants filed a motion to dismiss the Consolidated Amended Complaint.
INDUSTRY CLASSIFICATION:
SIC Code: 6189
Sector: Financial
Industry: Investment Services
| COMPANY/ISSUER NAME: | Morgan Stanley Capital I Inc. |
| COMPANY/ISSUER TICKER: | MS |
| COMPANY WEBSITE: | http://www.morganstanley.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Public Employees' Retirement System of Mississippi, et al. v. Morgan Stanley, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Notice of Removal of Action Under 28 U.S.C. § 1452 | |||
| Type: Complaint | Date on the document: 12/31/2008 | ||
| Order Granting Defendants' Motion To Transfer And Declining To Address Plaintiffs Motion To Remand | |||
| Type: Court Transfer Order | Date on the document: 03/05/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 03/18/2009 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In re Morgan Stanley Mortgage Pass-Through Certificates Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Order Consolidating Cases, Appointing Lead Plaintiff And Approving Selection Of Lead Plaintiff's Counsel | |||
| Type: Order of Consolidation | Date on the document: 07/17/2009 | ||
| Consolidated Amended Complaint For Violation Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 09/15/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 09/15/2009 | ||
| Lead Plaintiff’s Notice Of Dismissal Of Trust Defendants | |||
| Type: Notice | Date on the document: 11/12/2009 | ||
| OTHER DOCUMENTS | |||
| Complaint For Violations Of Federal Securities Laws | |||
| Case Name and/or Number: West Virginia Investment Management Board, et al. v. Morgan Stanley Capital I Inc., et al. | |||
| Type: Complaint | Date on the document: 05/07/2009 | ||
| Order Consolidating Cases, Appointing Lead Plaintiff And Approving Selection Of Lead Plaintiff's Counsel | |||
| Case Name and/or Number: West Virginia Investment Management Board, et al. v. Morgan Stanley Capital I Inc., et al. | |||
| Type: Order of Consolidation | Date on the document: 07/17/2009 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: West Virginia Investment Management Board, et al. v. Morgan Stanley Capital I Inc., et al. | |||
| Type: Complaint | Date on the document: 07/17/2009 | ||
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