(Reuters) - Morgan Stanley (NYSE:MS) said on Monday it could lose more than $290 million from a lawsuit by Deutsche Bank (XETRA:DBKGn) National Trust Co over the quality of about $735 million of the Wall Street firm's mortgages.
Deutsche Bank in April last year filed a complaint that alleged Morgan Stanley had falsely represented the quality of the loans, the U.S. bank said in a regulatory filing.
The loans were in a trust backed by a Morgan Stanley unit in which the Deutsche Bank subsidiary was a trustee, the filing said.
Morgan Stanley said the Southern District of New York court last month denied in part the company's motion to dismiss the case.
The bank estimated a loss of about $292 million, plus other costs, as a result of the judgment.