Liquidators Hit Big 3 Ratings Agencies With $1B RMBS Suit

Law360, New York (July 10, 2013, 2:12 PM EDT) -- Two Bear Stearns & Co. Inc. fund liquidators on Tuesday sued McGraw Hill Financial Inc., Moody's Corp. and Fitch Group Inc. in New York state court, seeking over $1 billion for allegedly fraudulent investment ratings of retail mortgage-backed securities and collateralized debt obligations.

Geoffrey Varga and Mark Longbottom, the joint official liquidators of Bear Stearns High-Grade Structured Credit Strategies (Overseas) Ltd. and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas) Ltd., sued the ratings organizations based on their investment in purportedly high-grade securities which have...
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