Reuters: Judge OKs U.S. $5B Fraud Suit Against S&P
Reuters reported that a U.S. federal judge has ruled that the U.S. government may pursue its $5 billion civil fraud lawsuit accusing S&P of misleading investors by inflating credit ratings.
Reuters reported that a U.S. federal judge has ruled that the U.S. government may pursue its $5 billion civil fraud lawsuit accusing S&P of misleading investors by inflating credit ratings.
Bloomberg reported that S&P will defend itself in the government’s fraud case against the ratings agency by arguing reasonable investors would not have relied on its “puffery” about credit ratings.
Reuters reported that S&P and its parent company McGraw Hill Financial won a ruling that moves 15 lawsuits in which they were accused of fraudulently inflating credit ratings to a single federal court.
The Wall Street Journal reported that S&P’s president Douglas Peterson said a proposal to revise its business model would create new conflicts of interest and disrupt financial markets.
S&P said it revised the ratings outlook on JPMorgan Chase and its banking subsidiaries to stable from negative. The rating agency also said it affirmed JPM’s issuer credit ratings.