CalPERS Allowed To Continue Lawsuit Against Credit Rating Agencies Over $1B Investment Loss
On Friday, the California 1st District Court of Appeal ruled that CalPERS can continue a lawsuit against Moody's Investors Service and Standard & Poor's over a $1 billion investment loss. In 2006, the pension fund lost $1 billion after investing in three "structured investment vehicles" that had received the "highest credit ratings" from the agencies, according to the suit.
- "CalPERS Lawsuit Against Wall Street Ratings Agencies Survives" (Kasler, AP/Sacramento Bee, 5/27).