Law360, New York (May 11, 2011, 4:09 PM ET) -- The Second Circuit on Wednesday upheld a lower court decision freeing credit ratings agencies from three securities class actions that alleged they played an essential role in misstatements and omissions in mortgage-backed securities documents.
The plaintiffs had argued that the ratings agencies were liable as underwriters because they had structured the certificates at issue to achieve the desired ratings, but the appeals court said that the Securities Act of 1933 only allowed parties involved in distribution activities of the securities, not those who merely "facilitated" the...
2nd Circ. Lets Ratings Agencies Off Hook In MBS Suits
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