S&P, Others Dodge Suit Over AAA Ratings On Bad Securites

Law360, New York (September 27, 2011, 9:43 PM EDT) -- A federal judge ruled Tuesday that rating agencies including Standard & Poor’s Financial Services LLC weren't liable for “predictive opinions,” dismissing five Ohio pension funds' suit alleging they lost $457 million in the mortgage crisis because of high ratings on troubled mortgage-backed securities.

The suit was filed in November 2009 against S&P, its owner The McGraw-Hill Cos. Inc., Moody’s Investors Service Inc., its parent company Moody’s Corp. and Fitch Inc.

The pension funds said they made the investments between 2005 to 2008, the run-up to the...
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