A Kansas City federal judge trimmed down a pair of lawsuits filed against Morgan Stanley & Co. (MS) and other companies, accusing the firms of selling more than $566 million in faulty mortgage-backed securities to two credit unions that are now out of business. Law360 explains:

U.S. District Judge John Lungstrum on Tuesday rejected the National Credit Union Administration board's claim that tolling agreements prevented the statute's three-year deadline from barring the lawsuits, citing an April case involving Credit Suisse that found tolling agreements couldn't void the extender statute.