Morgan Stanley Fair Fund

On July 24, 2014 the Securities and Exchange Commission (“SEC” or “Commission”) issued an Order Instituting Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing a Cease-and-Desist Order (“Order”) against Morgan Stanley and Co. LLC (f/k/a Morgan Stanley and Co. Incorporated), Morgan Stanley ABS Capital I Inc., and Morgan Stanley Mortgage Capital Holdings LLC (collectively “Morgan Stanley” or “Respondents”). The Order authorized the creation of a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended.

Morgan Stanley and its affiliates with making misleading public disclosures regarding the number of delinquent loans in two subprime residential mortgage-backed securities (“RMBS”) transactions offered in 2007 – Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 (“NC4”) and Morgan Stanley ABS Capital I Inc. Trust 2007-HE7 (“HE7”) (collectively “the Trusts”). As stated in the Order, Morgan Stanley failed to remove or accurately disclose loans with either current and/or historical delinquencies made in each transaction offering document. Pursuant to the Order, Respondents paid disgorgement of $160,627,852, prejudgment interest of $17,995,437 and a civil money penalty of $96,376,711, for a total of $275,000,000 to be distributed to harmed investors.

On February 4, 2016, the Commission appointed Garden City Group, LLC now known as Epiq Class Action and Claims Solutions Inc. (“Epiq”) as the Fund Plan Administrator to assist in developing the Distribution Plan of the Fair Fund. The Fund Plan Administrator, in consultation with the Commission staff, prepared the Distribution Plan, and the Commission approved the Plan on June 30, 2020.

If you purchased certificates in the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 and/or Morgan Stanley ABS Capital I Inc. Trust 2007-HE7 during the Eligible Purchase Periods, you must submit a completed Proof of Claim Form with the necessary documentation so that it is postmarked or, if not sent by U.S. Mail, received by December 12, 2020 (the “Filing Deadline”) to be eligible to recover from the Fair Fund. Eligible Purchase Periods means purchases made or before the date of the issuance of the first monthly remittance report issued to investors by the securities administrator for the Trust and not sold within that time-frame. For NC4, the Eligible Purchase Period ends on June 29, 2007. For HE7, the Eligible Purchase Period ends on October 24, 2007.