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...
To view the full article, register now.