Ratings Agencies Lose Motion to Dismiss in Subprime Litigation
Some argue the CDO financial fiasco years is the biggest mass tort in history. Towards that view, the ratings agencies suffered a major loss on a motion to dismiss in a case before the well-known and well-regarded Judge Schira Scheindlin.
D & O Diary covers the opinion here, and includes links to the opinion and other articles. In short, the court rejected a causation based argument that sought dismissal of the claims on the theory that that there were larger causes of the investor losses. D & O also mentions and links to Judge Scheindlin’s prior opinion rejecting a First Amendment defense to similar claims in a different case against ratings agencies.