CalPERS Reaches Deal With Fitch In False Ratings Suit

Law360, New York (August 29, 2011, 10:41 PM EDT) -- The California Public Employees' Retirement System settled its claims against Fitch Inc. on Friday in a suit accusing ratings agencies of improperly giving high ratings to structured investment vehicles, leading to as much as $1 billion in losses for the fund.

The settlement trims CalPERS' suit, which also targets Moody's Corp. and Standard & Poor's Financial Services LLC. The suit, originally filed in state court in July 2009, says the three agencies granted the highest possible credit ratings to three SIVs, prompting CalPERS to invest some...
To view the full article, register now.