S&P Paying $125M To End CalPERS Suit Over $1B Losses

By Kurt Orzeck (February 2, 2015, 11:01 PM EST) -- Standard & Poor's Financial Services LLC has agreed to pay $125 million to end the California Public Employees' Retirement System's state suit alleging the credit rating agency helped cause $1 billion in retirees' investment losses, according to an individual familiar with the litigation.

The parties recently agreed to the deal, which resolves litigation over three structured investment vehicles that included residential mortgage-backed securities, collateralized debt obligations and securitized home equity loans, the individual said. The parties are expected to make a formal announcement on Tuesday, according to the individual.

CalPERS filed suit in California court in 2009 alleging that the three...

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