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Moody's wins dismissal of shareholder lawsuit over ratings
August 23, 2013 / 9:05 PM / 4 years ago

Moody's wins dismissal of shareholder lawsuit over ratings

Aug 23 (Reuters) - Moody’s Corp, the parent of Moody’s Investors Service, has won the dismissal of a securities fraud lawsuit accusing it of misleading shareholders by making false statements about the independence and objectivity of its credit ratings.

In a decision made public on Friday, U.S. District Judge George Daniels in Manhattan said the shareholders failed to show a sufficient link between the alleged misstatements and declines in its share price during 2006 and 2007.

The lawsuit accused Moody’s of inflating its share price by making statements in its code of conduct, regulatory filings and to the press that concealed conflicts of interest in how it rated structured finance securities. It said the share price suffered declines as problems with the ratings began to surface.

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