Moody's, Standard & Poor's Escape $7.8B MBS Suit

Law360, New York (April 4, 2011, 2:34 PM EDT) -- A New York federal judge on Thursday dismissed Moody's Investors Service Inc. and Standard & Poor's Financial Services LLC from a class action accusing them and several bank underwriters of downplaying the risks associated with $7.75 billion in mortgage-backed securities offerings.

Judge Deborah A. Batts of the U.S. District Court for the Southern District of New York found that the allegations, brought by the New Jersey Carpenters Health Fund, lacked specificity.

“The court agrees that plaintiff’s allegations are conclusory in nature,” Judge Batts wrote in her order....
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