Bank Hapoalim v. Morgan Stanley et al.

Updated: April 22, 2014
Status: Ongoing Case
This case is one of many actions that Labaton Sucharow has filed on behalf of institutional investors who were defrauded in connection with the issuance of sub-prime residential mortgage-backed securities (RMBS). Sub-prime mortgages, such as those bundled together by Morgan Stanley and others, have experienced high delinquency and default rates and contributed significantly to the onset of the recent financial crisis.

Plaintiff Bank Hapoalim, one of the largest banks in Israel, claims that Morgan Stanley's offering materials for certain RMBS understated the risk of the securities and incorrectly asserted a number of key characteristics of the underlying loans, including loan-to-value ratios and the percentage of owner-occupied properties.

On April 22, 2014, the court denied defendant's motion to dismiss.

The case is Bank Hapoalim v. Morgan Stanley et al., No. 653036/2012, in the Supreme Court of the State of New York, County of New York.