NJ Accuses S&P Of Fraud For Offering Skewed Analyses

Law360, New York (October 9, 2013, 8:45 PM EDT) -- The state of New Jersey hit Standard & Poor’s Financial Services LLC with a fraud suit in state court Wednesday alleging the company maximized its market share and profits by misleading customers, the latest in a line of similar suits against the securities analysis firm.

New Jersey is accusing S&P and its parent company McGraw Hill Financial Inc. of shaping its analyses of structured finance securities around its own revenue goals, rather than objective data, and played favorites with investment banks that paid S&P fees, according...
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