Most efforts to hold ratings agencies liable for the financial crisis have failed, but on Jan. 3 two institutional investors got the green light to proceed with claims that ratings agencies misled them about a $1.1 billion structured investment vehicle called Rhinebridge Plc. The plaintiffs will also be able bring claims against Morgan Stanley, which structured and marketed Rhinebridge, although their claims were narrowed by the judge.
Southern District Judge Shira Scheindlin ruled that the two institutional investorsThe Iowa Student Loan Liquidity Corp. and King County, Washingtoncan go to trial with fraud claims against Moody’s Corp., Fitch Ratings Inc., and Standard & Poor’s Financial Services LLC, which all gave Rhinebridge their top rating. In addition, Scheindlin ruled that the investors can seek to hold Morgan Stanley liable for aiding and abetting the rating agencies’ alleged fraud. King County, Washington and Iowa Student Loan Liquidity Corporation v. IKB Deutsche Industriebank AG, 09 Civ. 8387 (SAS).
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
