Connecticut Attorney General Richard Blumenthal has sued Moody's Investors Service and Standard & Poor's(S&P) over ratings they issued on risky investments.
Moody's and S&P knowingly assigned false ratings to investments that pushed the country into a recession, Blumenthal said in the lawsuit. The lawsuit was brought under Connecticut's unfair trade practices law, and the attorney is seeking penalties and fines that could total hundreds of millions of dollars.
Read more about this case on the New York Times' blog: http://dealbook.blogs.nytimes.com/2010/03/10/connecticut-sues-moodys-and-s-p-over-ratings/?scp=1&sq=Attoney%20General%20Sues%20Moody&st=Search
