Morgan Stanley, Moody's, S&P On Hook In Fraud Suit

Law360, New York (September 3, 2009, 6:13 PM EDT) -- A judge has ruled that Morgan Stanley & Co. Inc., Moody's Investors Service Inc. and Standard & Poor's Rating Services must face class action fraud allegations that the firms deceived investors with overly favorable ratings of the first structured investment vehicle to fail in the credit crisis, while Bank of New York Mellon has been let off the hook.

Judge Shira A. Scheindlin on Sept. 2 dismissed the plaintiffs' other allegations in the suit and dismissed all claims against BNY Mellon but left room for the...
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