Moody's Can't Shake SOX Claim Over CDO Rating Methods

Law360, New York (February 29, 2012, 3:26 PM EST) -- Credit rating powerhouse Moody’s Corp. must face claims that it fired its former derivatives group manager after he repeatedly raised alarms about ratings for collateralized debt obligations, a New York federal judge ruled Monday.

U.S. District Judge Paul A. Crotty granted Moody's' motion to dismiss four claims by Ilya Eric Kolchinsky in an amended complaint, but said Kolchinsky could bring a claim under the Sarbanes-Oxley Act, which protects whistleblowers from retaliation by their employers.

The suit alleges Moody’s, its investor services unit and company CEO Raymond...
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Case Information

Case Title

Kolchinsky v. Moody's Corporation et al


Case Number

1:10-cv-06840

Court

New York Southern

Nature of Suit

Assault Libel & Slander

Judge

Ronnie Abrams

Date Filed

September 12, 2010

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