S&P Stumbles In Bid To Toss DOJ's $5B MBS Suit

Law360, Los Angeles (July 8, 2013, 8:38 PM EDT) -- A California federal judge Monday tentatively denied Standard & Poor's Financial Services LLC's attempt to toss the U.S. Department of Justice's $5 billion lawsuit accusing it of knowingly issuing ratings that didn't accurately reflect mortgage-backed securities' credit risk, saying the government adequately pled fraud claims.

At a hearing in Santa Ana, Calif., U.S. District Judge David O. Carter said he needed at least an additional week to think about whether to adopt the tentative decision as a final ruling.

“I'd like some time for reflection on this tentative,”...
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