Morgan Settlement Gets Tentative OK

Morgan Stanley Dean Witter & Co.’s $23-million settlement of a lawsuit accusing the investment company of looting trust funds for victims of car crashes and other accidents won preliminary approval from Los Angeles County Superior Court Judge Peter Lichtman.

Morgan Stanley does not admit liability with its $23-million settlement, which was reached out of court in June, said Rick Richmond, the firm’s attorney.

The case involves loans Morgan Stanley and other investment firms made to Stanwich Financial Services Corp., which oversaw more than $100 million in bonds meant for payments for people who settled serious accident claims.