(Bloomberg) — Allstate Insurance Co. agreed to settle a 2011 lawsuit accusing Morgan Stanley of fraud over more than $100 million worth of mortgage-backed securities in which the insurer invested.
The largest publicly traded U.S. home and auto insurer sued Morgan Stanley and other lenders in 2011, alleging they sold packages of risky home loans while claiming they conformed with “conservative” underwriting standards.
Northbrook, Illinois-based Allstate and New York-based Morgan Stanley have agreed to discontinue the suit, according to a Feb. 2 court filing in New York State Supreme Court.
“The lawsuit has been settled on mutually agreeable terms,” Allstate spokeswoman Maryellen Thielen said in an e-mail.
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