Moody's (MCO) and McGraw Hill (MHP) Fall As Judge Refuses To Dismiss Rating Agency Lawsuit
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Shares of Moody's (NYSE: MCO) and McGraw Hill (NYSE: MHP), which owns Standard & Poors, are under pressure after a judge ruled a federal judge in New York refused to dismiss a lawsuit against the rating agencies. Investment bank, Morgan Stanley (NYSE: MS) was also named in the suit.
The Associated Press reported that the judge allowed King County in Washington state and Abu Dhabi Commercial Bank to continue with their lawsuit claiming the pair of ratings agencies and the investment bank hid the risk of investing in a fund that purchased bonds backed by subprime mortgages.
Other claims, including breach of contract, were dismissed. Also trust bank Bank of New York Mellon (NYSE: BK) had charges against them thrown out.
Shares of MCO are down 8.7% and MHP is down 10.5%. MS is up 1% on the session.
The Associated Press reported that the judge allowed King County in Washington state and Abu Dhabi Commercial Bank to continue with their lawsuit claiming the pair of ratings agencies and the investment bank hid the risk of investing in a fund that purchased bonds backed by subprime mortgages.
Other claims, including breach of contract, were dismissed. Also trust bank Bank of New York Mellon (NYSE: BK) had charges against them thrown out.
Shares of MCO are down 8.7% and MHP is down 10.5%. MS is up 1% on the session.
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