S&P Can't Ditch DOJ's $5B MBS Fraud Suit

Law360, New York (July 17, 2013, 12:38 PM EDT) -- The U.S. government won permission late Tuesday to pursue a $5 billion fraud suit over Standard & Poor's Financial Services LLC's alleged role in the financial crisis, as a California federal judge sharply rejected the firm’s argument that its statements about objective mortgage-backed securities ratings were “mere puffery.”

U.S. District Judge David O. Carter denied S&P’s motion to dismiss claims it intentionally gave false ratings to securities tied to the imploding housing market in 2007. The firm had argued that its public statements touting the ratings...
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