Iowa joins lawsuit against credit rating agency
February 6, 2013 by N/A
Iowa has filed a consumer fraud lawsuit against a credit rating agency accused of improperly giving high ratings on risky mortgage investments.
Attorney General Tom Miller announced Tuesday that the state’s lawsuit in Polk County District Court against Standard & Poor’s Ratings Services is part of a coordinated civil law enforcement effort with other states.
They include Connecticut, Delaware, Illinois and Mississippi.
The Justice Department filed a federal lawsuit late Monday against S&P, claiming the agency was more concerned with making money than issuing accurate ratings.
S&P called the lawsuit “meritless” in a statement.
The Justice Department’s lawsuit marks the government’s first enforcement action against a major rating agency accused of helping the 2008 financial crisis.
