Bernstein Litowitz Berger & Grossmann LLP & Pond, Gadow & Tyler, P.A. Announce Filing of Class Action Suit Involving Mortgage Pass-Through Certificates of Morgan Stanley

NEW YORK, NY--(Marketwire - April 6, 2009) - The following statement was issued today by the law firms Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") and Pond, Gadow & Tyler, P.A. ("Pond Gadow").

On December 2, 2008, BLB&G and Pond Gadow filed a class action lawsuit in the Superior Court for the State of California, County of Orange on behalf of their client the Public Employees' Retirement System of Mississippi and similarly situated purchasers of Morgan Stanley ("Morgan Stanley") Mortgage Pass-Through Certificates (collectively, the "Certificates") pursuant to or traceable to the false and misleading March 14, 2006 Registration Statement and accompanying prospectuses. On December 31, 2008, defendants filed a Notice of Removal, removing the case from the Superior Court to the United States District Court for the Central District of California. On March 6, 2009, the District Court for the Central District of California transferred the action to the United States District Court for the Southern District of New York, where it is now pending as Case No. 09-02137.

The class includes purchasers of the following Certificates: Morgan Stanley Mortgage Loan Trust 2006-4SL, Morgan Stanley Mortgage Loan Trust 2006-5AR, Morgan Stanley Mortgage Loan Trust 2006-5ARW, Morgan Stanley Mortgage Loan Trust 2006-6AR, Morgan Stanley Mortgage Loan Trust 2006-7, Morgan Stanley Mortgage Loan Trust 2006-8AR, Morgan Stanley Mortgage Loan Trust 2006-9AR, Morgan Stanley Mortgage Loan Trust 2006-10SL, Morgan Stanley Mortgage Loan Trust 2006-11, Morgan Stanley Mortgage Loan Trust 2006-12XS, Morgan Stanley Mortgage Loan Trust 2006-13AX, Morgan Stanley Mortgage Loan Trust 2006-14SL, Morgan Stanley Mortgage Loan Trust 2006-15XS, and Morgan Stanley Mortgage Loan Trust 2006-16AX.

The complaint alleges that on March 14, 2006, defendants caused a Registration Statement to be filed with the SEC in connection with and for the purpose of issuing billions of dollars of Certificates. The Certificates were issued pursuant to the Prospectus Supplements, each of which was incorporated into one of the Registration Statements. The Certificates were supported by pools of mortgage loans.

According to the complaint, the Offering Documents included false statements and/or omissions about: (i) the underwriting standards used by the loan originators; (ii) the standards and guidelines used by Morgan Stanley when evaluating and acquiring the loans; (iii) the appraisal standards used to value the properties collateralizing the loans, and the corresponding loan-to-value ratios of the loans; (iv) the credit enhancement supporting the loan securitization process; and (v) the pre-established ratings assigned to each tranche of Certificates issued pursuant to the offering documents.

Ultimately, the truth about the performance of the mortgage loans that secured the Certificates began to be revealed to the public, increasing the risk of the Certificates receiving less cash flow in the future and the likelihood that investors would not receive it on a timely basis. The credit rating agencies also began to put negative watch labels on the Certificates, ultimately downgrading many. As a result, the Certificates are no longer marketable at prices near the price paid for them, and the holders of the Certificates are exposed to much more risk with respect to both the timing and absolute cash flow to be received than the Offering Documents represented.

The complaint alleges that Morgan Stanley, certain of its officers and directors and the issuers and underwriters of the Certificates violated Sections 11, 12 and 15 of the Securities Act of 1933. Plaintiff seeks to recover damages on behalf of all purchasers of the Certificates listed above (the "Class").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact David R. Stickney or Timothy A. DeLange of BLB&G at (858) 793-0070 or via e-mail at davids@blbglaw.com or timothyd@blbglaw.com. You can view a copy of the Complaint as filed and this notice online at http://www.blbglaw.com. Any member of the class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

Contact Information: CONTACT: David R. Stickney Timothy A. DeLange (858) 793-0070 davids@blbglaw.com timothyd@blbglaw.com