Morningstar Can't Duck Ponzi Scheme Receiver's Suit

Law360, New York (August 24, 2012, 8:22 PM EDT) -- A Pennsylvania federal judge ruled Thursday that the receivership estate of convicted Ponzi schemer Robert Stinson Jr. can proceed with a lawsuit alleging the Morningstar Inc. investment ratings agency contributed to Stinson's fraud by giving one of his hedge funds its top rating.

Chicago-based Morningstar argued in a motion to dismiss the case in June that the First Amendment shielded it from third-party liability for legitimizing Stinson's Life’s Good STABL Mortgage Fund and attracting investors who otherwise would not have given him money.

“Morningstar's ratings of...
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Case Title

SCHWARTZMAN v. MORNINGSTAR, INC.


Case Number

2:12-cv-01647

Court

Pennsylvania Eastern

Nature of Suit

Other Statutes: Securities/Commodities

Judge

BERLE M. SCHILLER

Date Filed

April 2, 2012

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