Moody's, S&P Liable For Bad Bond Advice, 9th Circ. Hears
By Beth Winegarner
Law360, San Francisco (September 11, 2013, 6:07 PM EDT) -- A California couple urged the Ninth Circuit on Wednesday to revive their fraud suit against Standard & Poor's, Moody's Investors Service and other investment-rating firms, arguing that the lower court was wrong to find the firms don't owe a duty to citizen investors who buy bonds based on their ratings.
Ronald Grassi, a retired attorney arguing on behalf of himself and his wife, Sally, argued that the rating agencies wouldn't have been liable for fraudulent investment ratings if they hadn't given advice on their websites to...