Standard & Poor’s Rating Services on Tuesday agreed to pay $1.5 billion to settle charges that it cheated investors by issuing inflated ratings that misrepresented the true credit risks of securities. The penalty is the largest ever recovered from a rating agency.
The money will be divided, with $687.5 million going to settle a 2013 suit filed by the U.S. Department of Justice, and $687.5 million to resolve suits by 19 states and the District of Columbia. In a separate settlement, S&P will also pay $125 million to settle claims by the California Public Employees’ Retirement System.
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