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AIG may file lawsuit against Morgan Stanley-SEC filing

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

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

Spokesmen for the two firms did not immediately respond to requests for comment.