Deutsche Bank in April last year filed a complaint that alleged Morgan Stanley had falsely represented the quality of the loans, the U.S. bank said in a regulatory filing.

The loans were in a trust backed by a Morgan Stanley unit in which the Deutsche Bank subsidiary was a trustee, the filing said.

Morgan Stanley said the Southern District of New York court last month denied in part the company's motion to dismiss the case.

The bank estimated a loss of about $292 million, plus other costs, as a result of the judgment.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Richard Chang)