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U.S. ex rel. Kolchinsky v. Moodys Corp.

FCA Claims Failed For Lack of Materiality As Government Continued to Pay for Services

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OPINION & ORDER

*1  Moody’s Corporation and Moody’s Investors Services, Inc. (collectively, “Moody’s”) move to dismiss Ilya Eric Kolchinsky’s Third Amended Complaint. Kolchinsky brings this action under the qui tam provisions of the False Claims Act (“FCA”), 31 U.S.C. §3729 et seq. In September 2017, this Court afforded Kolchinsky a final opportunity to satisfy the FCA’s stringent pleading requirements. See United States ex rel. Kolchinsky v. Moody’s Corp. (“Reconsideration Opinion”), 2017 WL 3841866, at *4 (S.D.N.Y. Sept. 1, 2017). For the reasons that follow, Moody’s motion to dismiss is granted. BACKGROUNDFamiliarity with this Court’s prior Opinions & Orders is presumed. See United States ex rel. Kolchinsky v. Moody’s Corp. (“Moody’s II”), 238 F. Supp. 3d 550 (S.D.N.Y. 2017); United States ex rel. Kolchinsky v. Moody’s Corp. (“Moody’s I”), 162 F. Supp. 3d 186 (S.D.N.Y. 2016). In short, Kolchinsky alleges that between 2004 and 2007, Moody’s artificially inflated credit ratings for residential mortgage-backed securities and collateralized debt obligations to attract more business. (Third Amended Complaint, ECF No. 94 (“TAC”)

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