Susan Beck’s Summary Judgment: Blowback for the Rating Agencies
As the Litigation Daily has chronicled over the years, the credit rating agencies have until recently enjoyed a rather charmed passage through our courts, with various judges deciding they deserve First Amendment protection against claims that they issued defective ratings.
Then, two weeks ago, a major milestone was reached. Standard & Poor's Rating Services and Moody's Investors Service decided for the first time to pay up and settle allegations over their flawed ratings of subprime securities. With trial quickly approaching, the defendants agreed to shell out a reported $225 million to resolve two suits brought by investors who claim they lost hundreds of millions of dollars in a couple of investment vehicles called Cheyne Finance and Rhinebridge that crashed in 2007.
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