Court Denies Class Cert. In Moody's Securities Suit

Law360, New York (April 1, 2011, 5:07 PM EDT) -- A New York federal judge on Thursday refused to certify a class of plaintiffs in a suit alleging Moody’s Investors Service misled investors about its independence from the entities it rated.

Judge George B. Daniels of the U.S. District Court for the Southern District of New York said the plaintiffs, led by a pension fund and two individuals, had failed to tie any misrepresentations concerning Moody’s so-called issuer-pays model to spikes in its stock price.

“There is no period within the proposed class period where the...
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