Law360, New York (April 27, 2016, 2:29 PM EDT) -- The Second Circuit on Wednesday revived a suit asking Morgan Stanley to buy back an $81 million mortgage loan it allegedly sold to investors despite hidden environmental risks, saying a lower court erred by concluding the loan servicer waited too long to serve notice of a contractual breach.Bank of New York Mellon Trust Co. NA is suing Morgan Stanley as trustee for investors in a multibillion-dollar securities offering backed in part by the loan at issue. That loan, provided by Morgan Stanley for the purchase of an Ohio shopping center built atop a landfill, went into default after methane leaks... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
Morgan Stanley must face a revived lawsuit, which alleges that the bank ought to buy back an $multibillion-dollarm mortgage loan it had allegedly sold to investors despite hidden environment risks.