Moody’s Loses Bid To Reconsider Loss Causation

Law360, New York (April 29, 2009, 12:00 AM EDT) -- A judge has shot down Moody’s Investors Service’s motion for reconsideration of a loss causation analysis in a class action alleging that it misled investors about its independence from the entities that it rated.

Judge Shirley Wohl Kram of the U.S. District Court for the Southern District of New York denied the motion on Wednesday, quashing Moody’s argument that the court had misconstrued stock price data key to the loss causation theory.

Moody’s filed the motion for reconsideration in reaction to a Feb. 23 opinion that...
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