CalPERS Allowed to Proceed with Suit Against Ratings Firms
September 11, 2014
The California Supreme Court on Wednesday allowed CalPERS' lawsuit alleging negligent misrepresentation against credit-rating agencies Moody's and Standard & Poor's to proceed, by not electing to hear an appeal filed by the rating agencies.
CalPERS filed its lawsuit in 2009 seeking recovery for losses it sustained on certain structured investment vehicles that were rated by Moody’s and Standard & Poor’s. The rating agencies had appealed a May 23, 2014, decision by the California Court of Appeal.
The California Supreme Court’s decision permits CalPERS action against the ratings agencies to further proceed.