McGraw-Hill said in a statement released along with the fourth-quarter earnings this, “the company does not believe that the Department of Justice can prove that at the time almost all the mistakes committed by any person in the Standard & Poor’s internal intentionally misconduct the result. “by the United States federal government accused of fraud and claim the $ 5 billion rating agency Standard & Poor’s parent company, McGraw-Hill Tuesday the case for the first time to respond, saying the allegations do not think the government was established.
McGraw-Hill said in a statement, Standard & Poor’s has successfully defended itself consistent record, including its vaunted objective rating and deceive investors allegations victory before the U.S. Department of Justice accused. Then reported that the U.S. government requires a fine of over 1 billion U.S. dollars, and the requirements of the Standard & Poor’s recognition of the allegations of misconduct, the Standard & Poor’s party believes that this will make the company may face other parties to the litigation, and impossible to accept recognition the conditions of the counts.
Working with legal action from multiple state attorneys general, including Connecticut and California deal McGraw-Hill also declare that, even so, the company is willing to discuss reasonable settlement .
Reuters reported last week quoted informed sources say the negotiations surrounding the settlement agreement actually has been broken before the U.S. government last week announced the decisions of this case, the value of $ 5 billion lawsuit. In many cases, the right to freedom of expression may not be the best defense strategy, because the allegations are more concerned about deceptive behavior, but at this point, the S & P have adequately prepared court at any time.
BTIG analyst Mark Baumol (Mark Palmer) e-mail comments that the rating agencies in the near future before been able to successfully win in most litigation, because they can effectively invoke the First Amendment of the Constitution as a legal protection but now It seems that in the future they can continue to use this defense strategy is completely unknown. ”
On behalf of the Standard & Poor’s interests in dozens of cases before a lawyer, Floyd Abrams, a well-known First Amendment spokesperson (Floyd Abrams), before the speech, but to seek penalties of $ 5,000,000,000; rating services provided by these collateralized debt obligations named in the indictment, the S & P only for less than $ 15 million in revenue.
McGraw-Hill Advocate General Kenny Sweeney said Patel (Kenneth Vittor), Department of Justice allegations against a loss of about $ 500 million more than just financial institutions protected by federal insurance suffered