Summary Box: Discover pays Morgan Stanley $775 million to settle lawsuit
By APFriday, February 12, 2010
Summary Box: Discover settles with Morgan Stanley
THE NEWS: Discover Financial Services paid Morgan Stanley $775 million to settle litigation over proceeds from a separate antitrust case filed before Morgan Stanley spun off Discover in 2007.
THE DETAILS: Discover had earlier declined to pay Morgan Stanley, claiming the bank had interfered in the settlement Discover reached with Visa and MasterCard in the antitrust case.
THE BOTTOM LINE: Discover has already paid the taxes on the settlement money, so the $775 million will be added directly to Morgan Stanley’s profit.
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