AIG may file lawsuit against Morgan Stanley-SEC filing

Reuters

NEW YORK, Nov 4 (Reuters) - American International Group Inc may file a lawsuit against Morgan Stanley relatedto $3.7 billion worth of mortgage securities that the investmentbank sponsored or underwrote from 2005 to 2007, and which AIGpurchased, according to a regulatory filing on Monday.

AIG has terminated a "tolling agreement" with MorganStanley, which allowed the companies to try to settle theirdispute out of court. The termination will be effectiveThursday, according to Morgan Stanley's 10-Q filing with theU.S. Securities and Exchange Commission.

Spokesmen for the two firms did not immediately respond torequests for comment.

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