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Moody's Corporation Summary: On June 27, 2008, a Consolidated Amended Complaint was filed.
On September 26, 2007, a similar purported class action complaint, 07-CV-08375, was also filed in the U.S. District Court for the Southern District of New York. On December 12, 2007, Northern District of Illinois Judge Ruben Castillo granted the motion to appoint Teamsters Local 282 Group and Lewis Wetstein, M.D., as co-lead plaintiffs and granted the selection of lead and liaison counsels. The law firms Glancy Binkow & Goldberg LLP, Kirby McInerney, LLP and Schiffrin Barroway Topaz & Kessler, LLP were approved as co-lead counsel, and the law firm of Pomerantz Haudek Block Grossman & Gross LLP was approved as local counsel. On February 7, 2008, the Nach action filed in the U.S. District Court for the Northern District of Illinois was transferred to the U.S. District Court for the Southern District of New York. Further, on May 28, 2008, the Nach action was consolidated into Lead Case, 07-CV-8375.
The original complaint filed in the U.S. District Court for the Northern District of Illinois, Nach, et al. v. Huber, et al., case number 07-CV-04071, alleges violations of the Securities Exchange Act of 1934. Moody's Corporation, through its subsidiaries, provides credit ratings, research, and analysis covering fixed-income securities, other debt instruments and the entities that issue such instruments in the global capital markets. Among other things, the Company assigns ratings to mortgage bonds comprising risky "subprime" home loans , including bonds packaged as "collateralized debt obligations" and other securities backed by subprime assets. Investors rely on these ratings to assess the value and risk of these investments. While the nation's housing market was booming, Moody's reaped millions of dollars in fees for assigning ratings to subprime-mortgage-backed securities.
Specifically, the complaint alleges that throughout the Class Period, Defendant misrepresented or failed to disclose that the Company assigned excessively high ratings to bonds backed by risky subprime mortgages including bonds packaged as collateralized debt obligations - which was materially misleading to investors concerning the quality and relative risk of these investments. Moreover, even as a downturn in the housing market caused rising delinquencies of the subprime mortgages underlying such bonds, Moody's maintained its excessively high ratings, rather than downgrade the bonds to reflect the true risk of owning subprime-mortgage-backed debt instruments.
Then, on July 11, 2007, Moody's shocked investors when it announced that the Company was downgrading 399 mortgage-backed securities issued in 2006 and reviewing an additional thirty-two for downgrade, affecting approximately $5.2 billion of bonds. The Company also disclosed that it had downgraded 52 bonds issued in 2005.
INDUSTRY CLASSIFICATION:
SIC Code: 7320
Sector: Services
Industry: Business Services
| COMPANY/ISSUER NAME: | Moody's Corporation |
| COMPANY/ISSUER TICKER: | MCO |
| COMPANY WEBSITE: | http://www.moodys.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Raphael Nach, et al. v. Linda Huber, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Complaint - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 07/19/2007 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 02/20/2008 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In re Moody's Corporation Securities Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Stipulation and Order on Scheduling and Consolidation | |||
| Type: Order of Consolidation | Date on the document: 4/28/2008 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 6/27/2008 | ||
| OTHER DOCUMENTS | |||
| Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Teamsters Local 282 Pension Trust Fund, et al. v. Moody's Corporation, et al. | |||
| Type: Complaint | Date on the document: 09/26/2007 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: Raphael Nach, et al. v. Linda Huber, et al. | |||
| Type: Docket | Date on the document: 02/13/2008 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: Raphael Nach, et al. v. Linda Huber, et al. | |||
| Type: Docket | Date on the document: 5/28/2008 | ||
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