Moody's Cost US Billions, Says Ex-Analyst's FCA Suit

By Brandon Lowrey (August 22, 2014, 10:28 PM EDT) -- A former Moody's Corp. analyst accused the credit rating firm of giving false ratings to toxic mortgage-backed securities in the lead-up to the 2008 financial crisis, costing the government billions of dollars, in a massive False Claims Act complaint unsealed Friday after the government declined to intervene.

Ilya Kolchinsky's 107-page complaint, filed in February 2012, alleges Moody's issued high ratings from 2004 to 2007 for the vast majority of U.S. residential mortgage-backed securities and collateralized debt obligations.

"Unbeknownst to investors, these ratings were not the product of independent, objective calculation, but rather the result of concealed conflicts of interest and Moody's...

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!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!