Moody's Settles Derivative Suits Over Inflated Ratings

Law360, New York (July 19, 2012, 10:27 PM EDT) -- Moody’s Corp. on Thursday agreed to settle consolidated shareholder derivative actions brought in 2008 claiming the company issued inflated, undeserved credit ratings to securities issuers that caused trillions of dollars in high-risk securities to be sold to investors.

No dollar amount was given in the settlement documents, but Moody’s did agree to institute certain governance provisions meant to ensure the validity and accuracy of their credit rating process. The settlement also said the plaintiffs' counsel would apply for $4.9 million in attorneys' fees for the suit,...
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