Illinois Tells Standard & Poor's to Pay the Piper (defrauded investors)
Illinois Tells Standard & Poor's to Pay the Piper
CHICAGO (CN) - The Illinois attorney general claims Standard & Poor's defrauded investors by illegally and systematically misrepresenting credit analysis of structured finance securities to benefit its major clients and itself.
"This lawsuit seeks redress for S&P's unfair, deceptive, and illegal business practice of systematically misrepresenting that its credit analysis of structured finance securities was objective, independent and not influenced by either S&P's or its clients' financial interests. These representations were untrue," Attorney General Lisa Madigan says in the 47-page complaint in Cook County Chancery Court.
The state sued Standard & Poor's Financial Services and its corporate parent, The McGraw-Hill Cos.
A structured security is an investment strategy based on derivatives, which packages stocks, commodities, options, debt issuance and/or foreign currency, among other financial products. Based on its research, Standard & Poor (S&P) rates the risk of such investments.
http://www.courthousenews.com/2012/01/30/43449.htm
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