Lawyers for Reed Smith on Tuesday urged a Manhattan state court to dismiss a $500 million malpractice suit over the firm’s work for a pair of Bear Stearns investment funds on a financial crisis-era lawsuit against the major credit rating agencies.

Represented by Reid Collins & Tsai, liquidators for the now defunct Cayman Islands-based funds sued Reed Smith in January, alleging that the firm missed key statute of limitations deadlines in connection with a fraud lawsuit against Standard & Poor’s, Moody’s and Fitch Ratings that could have been worth a billion dollars.