S&P Can't Escape $600M Calif. Suit Over Crisis-Era Ratings

Law360, New York (August 15, 2013, 10:11 PM EDT) -- Standard & Poor's Financial Services LLC must face allegations by the state of California that its faulty ratings of mortgage-backed securities before the financial crisis led to nearly $600 million in investor losses, a judge ruled Wednesday, saying a three-year statute of limitations had not yet expired.

Superior Court Judge Curtis E.A. Karnow rejected S&P’s bid to throw out allegations under the California False Claims Act. The U.S. Department of Justice, California and more than a dozen other states launched separate complaints in February alleging S&P's...
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