Moody’s Dodges Bid To Revive Securities Ratings FCA Suit

Law360 (March 13, 2018, 6:05 PM EDT) -- A New York federal judge on Tuesday dismissed the third amended complaint brought against Moody’s Corp. by a whistleblower alleging it violated the False Claims Act when it gamed ratings to preserve business in the lead-up to the 2008 financial crisis.

U.S. District Judge William H. Pauley III shot down former Moody’s Managing Director Eric Kolchinsky’s fifth attempt to revive the suit, saying he failed to remedy the pleading deficiencies highlighted in his previous attempts at revival.

“Kolchinsky’s generalized claims do not plausibly connect Moody’s purported ratings errors to claims submitted to the government for payment, nor does it create a...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!