S&P Shakes Investor Suit Over Fannie Ratings

Law360, New York (June 24, 2013, 7:57 PM EDT) -- A New York federal judge on Monday tossed a class action claiming Standard & Poor's Financial Services LLC defrauded investors when it gave a good rating to Fannie Mae stock ahead of the financial crisis, finding no evidence of deceit by the agency.

U.S. District Judge Paul Engelmayer said the plaintiffs who claimed S&P knowingly misrated Fannie stock had not shown evidence that the company disbelieved its ratings when it made them.

“The complaint fails by a wide margin to allege adequately that S&P did not...
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