Judge Dismisses Investor Suit Against S&P, Moody’s

A federal judge has dismissed a lawsuit against Standard & Poor's (S&P) and Moody's in which investors claimed the rating agencies helped to structure mortgage-backed securities (MBS) issued by Lehman Brothers Holding Inc.

According to a BusinessWeek report, the suit centered on nearly $100 billion of MBS issued by Lehman over a 21-month period ending in early 2007. Spokespeople from McGraw-Hill (S&P's parent company) and Moody's both said they were pleased with U.S. District Judge Lewis A. Kaplan's decision.

Joel Laitman, lead counsel for the investors who brought the suit, told reporters they would wait to see Kaplan's written ruling, which has not yet been released, before deciding their future course of action.

SOURCE: BusinessWeek


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