Credit Ratings Agencies' Reports Ruled To Be Protected Speech

Bloomberg:

Ratings by Moody's Investors Service Inc., Standard & Poor's and Fitch Ratings Ltd. described as "wildly inaccurate" in a $1 billion lawsuit are protected speech, a California judge said in a tentative ruling.

Judge Richard Kramer in San Francisco state court said yesterday that the companies' ratings of three structured investment vehicles that the California Public Employees' Retirement System lost money on are a form of speech about an issue of public interest that is protected under a state law designed to fend off cases meant to chill public debate.

Read the whole story: Bloomberg

Comments

[wtf-please]

02:33 PM on 12/14/2010

Who are the credit ratings biggest customer..? banksters

Trying to F%$K you over your credit score after demolishing the economy. my banks fico score is 436 and mine is 578, guess who gets the bailout and guess who gets to pay more to use leverage?
Luckily leveraging into a ponzi style economy wont be in the stars for at least another 6-8 years. Then we will be faced with another economic tsunami based on greed, excess and corporate malfeasance. "New Normal"

[jo smith456]

05:42 AM on 12/14/2010

Investment Credit Rating was one of the critical mechanisms that facilitated the financial and economic mess brought about by the wall street financiers

[Fler]

11:36 AM on 12/14/2010

You are so right! Critical failure of epic proportions here. Thankfully, according to the article that this ruling does NOT end the case. Definitely one to watch. I contacted my state AG immediately upon hearing about this suit to inquire what was being done in OUR state to recoup pension losses based on these supposedly "AAA" rated securities and I suggest everyone else do the same. Does not affect me personally, but I do not want to see my neighbors old, sick, & bagging groceries to get by for the remaining years of their lives due to this fraud.

[Olderandwiser55]

12:07 AM on 12/14/2010

This a California tort reform law designed to stop "frivolous' lawsuits.

This is what tort reform looks like and why we don't want it.

[Intolerantcentrist]

09:07 PM on 12/13/2010

This is only State Court; more than likely it's going to the Fed Court.

[Olderandwiser55]

11:57 PM on 12/13/2010

This is regarding a California state law. It's not done yet. But this is what tort reform can look like.

To win an anti-SLAPP motion, the defendant must first show that the lawsuit is based on constitutionally protected activity. Then, the burden shifts to the plaintiff, to affirmatively present evidence to show that they have a reasonable probability of prevailing on the action. The filing of an anti-SLAPP motion stays all discovery. This feature acts to greatly reduce the cost of litigation to the anti-SLAPP defendant, and can make beating the motion extremely difficult for the plaintiff, because they effectively must prove their case without the benefit of discovery.

[Intolerantcentrist]

10:03 PM on 12/14/2010

Is the outcome of such a “prima-facie” action at the State level heavily depended upon the selection / discretions of the judge(s) or are there statutory limitations within this bit of tort reform?

[moose and squirrel]

08:37 PM on 12/13/2010

goes to show, dont invest in anything you dont understand. 

[blueken]

04:21 PM on 12/13/2010

"All in all, it's just another brick in the wall" Pink Floyd.

[nanimal]

03:49 PM on 12/13/2010

Boy do these people have the game rigged in their favor, I can see why a lot of investors are picking up their ball and going home, it's not fun when the game is so unfair.

[nanimal]

02:00 PM on 12/13/2010

These ratings are offered for a fee how can it be protected speech? Once again Wall Street wins and the guy who loses his life savings by relying on these phony ratings gets the shaft...typical! But oh no...we don't need consumer protection...how would Wall Street continue to fleece the American people.

[Mondayboy]

01:02 PM on 12/13/2010

Where do they find these judges?

[getsit]

02:24 PM on 12/13/2010

The judges who try these cases are expert in these kinds of financial dealings and you know what I mean.

[nanimal]

03:42 PM on 12/13/2010

You mean expert at ruling in favor of business? Business that contributes to the judges campaign coffers or contributions toward a second home, trips, etc...? Yeah people... many judges are bought and paid for that is how they make the decision on where to file the briefs, do you think it is all a coinkydink?

[Fox McCloud]

11:55 AM on 12/13/2010

Fraud is free speech. Beautiful.

[sneakurs]

11:47 AM on 12/13/2010

This has to be addressed in a more compentent court. If investment reports are protected speech, what are corporate filings? What would be the use of Safe Harbour? Analysts would no longer be required to divulge their own interests. Kramer is Krackers.

[Paul Sta]

11:41 AM on 12/13/2010

Ratings by Moody's Investors Service Inc., Standard & Poor's and Fitch Ratings Ltd. described as "wildly inaccurate" in a $1 billion"

Amazing so now gross incompetance and negligence, ignoring their fidicuary duty, is protected under the law, credit agencies wer grossly incompetant when rating the toxic swill that composed billions in MBS.

Hard to believe they aren't to be held accountable, but then this is America, only taxpayers are held accountable, corporate malfeasance is the rule of law.

[getsit]

02:25 PM on 12/13/2010

Not gross incompetance and negligence but out and out fraud. They make money from the financial institutions so have an interest in keeping the banks happy.

[Foodgrade]

11:37 AM on 12/13/2010

Spurious investment ratings similar to the ratings of the bad paper the banks sold that got us into this mess are protected speech and challenges are considered SLAPP suits? -Strategic Lawsuit Against Puplic Participation. This judge is on trugs.

[cassie reinara]

11:31 AM on 12/13/2010

So, yelling FIRE in a crowded theater and lieing under oath is now protected speech?!

[KIampfbeobachter]

06:38 PM on 12/13/2010

so is failing a false affidavit- robo signers come to mind.

[Kevin Atlanta]

11:21 AM on 12/13/2010

One more step in the consolidation of the Corporate Fascist strangle-hold on America.  Goldman Sachs purchases the ratings that they want on the bundled junk that they push and it's protected speech just as in Citizens United.