Morgan Stanley Mortgage Capital Holdings  was sued for at least $110.8 million by a trustee for investors in MBS.

The Morgan Stanley unit made “numerous and repeated failures” to comply with promises about the loans underlying the securities, trustee U.S. Bancorp said in a Sept. 28 filing in New York State Supreme Court.

The original principal balance of loans sold as securities was $609 million, and the amount of defective loans is more than $129 million, according to the filing. U.S. Bancorp said it is seeking at least $110.8 million in damages.

Lauren Onis, a spokeswoman for New York-based Morgan Stanley, didn’t immediately respond to an email seeking comment on the suit.

The case is Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley, 653429-2012, New York State Supreme Court, New York County (Manhattan).

Previously, a federal judge in New York said Flagstar Bancorp must stand trial over charges it breached contracts for financial guaranty insurance on roughly $1 billlion in residential MBS it issued.

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