Illinois AG Sues Standard & Poor's over Ratings


CHICAGO, Jan. 26 (LID) – Illinois Attorney General Lisa Madigan (D) filed a lawsuit against Standard & Poor's Ratings Services, alleging the company misrepresented the value of residential mortgage-backed securities (RMBS) sold to investors.

By assigning inflated ratings to risky mortgage-backed investments since at least 2001, Madigan said the credit-rating firm played an implicit role in the housing market meltdown.

Filed Wednesday in Cook County Circuit Court, the lawsuit alleges that S&P fraudulently assigned its highest rating of AAA to risky securities as part of a corporate strategy to increase revenues and market share.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Law & Industry Daily, Law & Industry Daily | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.