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Judge Lets U.S. Pursue $5 Billion Fraud Lawsuit Against S&P

On July 16, U.S. District Judge David Carter in California ruled that the federal government may pursue its $5 billion civil fraud lawsuit charging Standard & Poor’s (S&P) with misleading investors by inflating credit ratings...
July 23, 2013

On July 16, U.S. District Judge David Carter in California ruled that the federal government may pursue its $5 billion civil fraud lawsuit charging Standard & Poor’s (S&P) with misleading investors by inflating credit ratings. The judge said that the federal government had made its case adequately enough to substantiate its fraud claims, and turned down S&P’s motion to dismiss the lawsuit. The case, initiated in February 2013, accuses the rating firm of not being impartial in its ratings during the period from 2004 to 2007 and inflating ratings so that it could get more fees from institutions that pay for its ratings. Fourteen states and the District of Columbia are suing S&P over similar claims in the U.S. District Court in Manhattan.

$5 Billion Lawsuit Against S&P to Proceed (Reuters 7/17/13)

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