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...

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