Calif.’s S&P Suit Heralds Bold False Claims Push

Law360, San Diego (February 8, 2013, 11:23 PM EST) -- A day after the U.S. government accused Standard & Poor’s Financial Services LLC of inflating ratings on mortgage-backed securities, California’s attorney general filed suit claiming the credit ratings company’s practices violated the state’s False Claims Act, an aggressive use of a law typically asserted by company whistleblowers that experts say could stretch its scope.

Attorney General Kamala Harris claims that between 2004 and 2007, S&P corrupted its objective ratings process to curry favor with large banks, which paid it billions of dollars in return. Public pension...
To view the full article, register now.