An attempt by Standard & Poor’s to move a Connecticut lawsuit over its allegedly fraudulent ratings of mortgage-based securities from state to federal court has been denied by a federal judge in Bridgeport, who ordered the agency to pay the state’s legal fees.
The decision by U.S. District Judge Stefan Underhill on Wednesday, April 24 allowed the state Attorney General’s Office to further chide S&P for its conduct. The state’s lawsuit claims S&P defrauded investors between 2004 and 2007 by giving high ratings to investment instruments that were at the heart of the financial crisis.
