Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, February 4, 2013

Government Plans to Sue S&P Alleging Fraudulent Ratings

The financial press is reporting that the U.S. Department of Justice, as well as state officials, plan to file civil fraud charges against Standard & Poor's Ratings Service, charging that the firm fraudulently rated mortgage bonds.  This would be the first government suit against a ratings firm related to the financial crisis.  The company issued a statement stating that any suit would be "entirely without factual or legal merit."

Settlement discussions reportedly broke down because the government was talking about a settlement figure around $1 billion, a somewhat higher figure that the parent company's profits for last year.

NYTimes, Dealbook, U.S. and States Prepare to Sue S.&P. Over Mortgage Ratings

WSJ, U.S. and States Prepare to Sue S.&P. Over Mortgage Ratings

http://lawprofessors.typepad.com/securities/2013/02/government-plans-to-sue-sp-alleging-fraudulent-ratings.html

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