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Justice Department wants states to decide S&P lawsuits
Source: Reuters
Justice Department wants states to decide S&P lawsuits
WASHINGTON | Fri Mar 29, 2013 5:35pm EDT
(Reuters) - The Department of Justice opposed Standard & Poor's efforts to move a spate of lawsuits charging the ratings agency with fraud to federal from state courts.
Standard & Poor's is seeking to move lawsuits by 15 U.S. states and Washington, D.C. to the federal level, hoping to limit liabilities as it defends itself against accusations of inflating credit ratings in a bid to win fees from clients.
But the Department of Justice, in a filing in the U.S. District Court for the District of Connecticut on Friday, said there was no basis in law to move the cases to the higher-level.
"Based on the nature of the causes of actions alleged by the States, and the controlling precedents, there is no federal-question jurisdiction justifying removal," it said.
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WASHINGTON | Fri Mar 29, 2013 5:35pm EDT
(Reuters) - The Department of Justice opposed Standard & Poor's efforts to move a spate of lawsuits charging the ratings agency with fraud to federal from state courts.
Standard & Poor's is seeking to move lawsuits by 15 U.S. states and Washington, D.C. to the federal level, hoping to limit liabilities as it defends itself against accusations of inflating credit ratings in a bid to win fees from clients.
But the Department of Justice, in a filing in the U.S. District Court for the District of Connecticut on Friday, said there was no basis in law to move the cases to the higher-level.
"Based on the nature of the causes of actions alleged by the States, and the controlling precedents, there is no federal-question jurisdiction justifying removal," it said.
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Read more: http://www.reuters.com/article/2013/03/29/us-sandp-lawsuit-idUSBRE92S0HG20130329
