SAN FRANCISCO (Legal
Newsline) — California Attorney General Kamala D. Harris has filed a lawsuit
against Morgan Stanley for allegedly misrepresenting complex investments like
mortgage-backed securities that contributed to the global financial crisis and
to major losses by investors that included California’s public pension funds,
which provide retirement security to California peace officers, firefighters
Harris’ office alleges Morgan Stanley violated the False Claims Act, the California Securities Law and other state laws by concealing or understating risks associated with many of its investments.“Morgan Stanley’s conduct
in this case evidenced a culture of greed and deception that helped create a
devastating economic crisis and crippled California’s budget,” Harris said.
“This lawsuit is necessary in order to hold Morgan Stanley accountable for the
destruction it caused to California, our people and our pension funds.”
The California Public
Employees Retirement System and the California State Teachers Retirement System
both lost hundreds of millions of dollars on these Morgan Stanley investments.Kamala Harris is also investigating Humboldt County Child Welfare Services, and a couple of local judges.
In : Kamala Harris