Ex-Moody's Analyst Drops Bad Ratings Whistleblower Suit
By David McAfee (January 4, 2013, 7:26 PM EST) -- Former Moody's Corp. analyst Ilya Kolchinsky on Thursday dropped his lawsuit against the credit rating giant and its CEO Raymond McDaniel, ending allegations that Kolchinsky was demoted and eventually fired for raising alarms about the company's practices for rating risky mortgage debt.
Thursday's dismissal comes nearly a year after a New York federal judge allowed Kolchinsky to pursue a claim under the Sarbanes-Oxley Act, which protects whistleblowers from retaliation by their employers, saying the former Moody's derivatives group manager sufficiently alleged that the company took "unfavorable action" after he pointed out potential securities laws violations.
The prolonged litigation against the credit...
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