- McGraw Hill (MHFI) unit S&P and Moody's (MCO) must face a lawsuit from Calpers over ratings they gave on investments that led to losses of $800M.
- An appeals court affirmed a lower-court ruling from 2012 to reject the firms' request to dismiss the case.
- Calpers sued the agencies in 2009 after the collapse of three investment vehicles that were supported by sub-prime mortgages. The pension system had invested $1.3B.
- S&P is the subject of similar lawsuits from the Justice Department and individual states, including California.
at Zacks.com (Oct 30, 2014)