Morgan Stanley will pay $95 million to settle claims brought by investors that the bank sold them faulty residential mortgage-backed securities (RMBS) in the run-up to the financial crisis.
As per a Reuters report, the settlement is the result of a lawsuit filed in New York federal court several years ago by the Public Employees' Retirement System of Mississippi and the West Virginia Investment Management Board.
In the suit, the investors claimed that Morgan Stanley made false and misleading statements concerning the poorly underwritten securities, which were sold in 13 offerings in 2006 and 16 offerings in 2007.
For more, check out the Reuters report.