Sealink Funding Sues Morgan Stanley for RMBS Losses

On January 20, 2012, Sealink Funding Ltd. filed a complaint in New York state court against several Morgan Stanley entities in connection with certificates in 11 RMBS offerings allegedly purchased by Sealink during 2006 and 2007 for approximately $556 million. Sealink alleges that Morgan Stanley made misrepresentations about its due diligence regarding the mortgage loans underlying the certificates and the underwriting guidelines used by the originators of those loans. Sealink asserts claims for common law fraud, fraudulent inducement, and negligent misrepresentation, and seeks rescission and damages. Complaint.