A federal judge ruled that investors in a structured investment vehicle containing mortgage-backed securities sufficiently alleged an actionable misstatement against the credit rating agencies and the investment bank that placed the rated notes.
The rating agencies had long argued that their ratings of securities were constitutionally protected opinion. But U.S. District Judge Shira Scheindlin ruled in this opinion that the ratings of securities that were distributed to a limited number of investors don't deserve the same free-speech protection as more general ratings of corporate bonds that were widely disseminated.
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Securities Law Updates, Business Torts Updates, Constitutional Law Updates
Federal, 2nd Circuit, New York |
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.
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