| Company: | Morgan Stanley Capital |
| Ticker Symbol: | MS |
| Class Period: | Dec-23-05 to Nov-23-07 |
| Date Filed: | May-12-09 |
| Lead Plaintiff Deadline: | Jul-11-09 |
| Court: | Southern District of New York |
| Allegations: | |
The suit was filed in the U.S. District Court for the Southern District of New York and relates to "false and misleading registration statement and prospectus supplements" issued by Morgan Stanley between December 2005 and November 2007.
The complaint charges Morgan Stanley Capital, some of the company's 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.
It alleges that on Dec. 23, 2005, Morgan Stanley Capital and the defendant issuers caused a registration statement, which discusses underwriting standards and borrower qualification requirements, to be filed with the Securities and Exchange Commission in connection with the issuance of billions of dollars of certificates.
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 did not meet the prudent or maximum debt-to-income ratio purportedly required by the lender; did not provide adequate documentation to support the income and assets required; were steered to stated-income/asset and low-documentation mortgage loans by lenders, lenders' correspondents or lenders' agents, because the borrowers could not qualify for mortgage loans that required full documentation; and did not have the income required by the lenders' own guidelines to afford the required mortgage payments.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
