Shares in two companies that own credit-rating firms, Moody’s Corp. and McGraw-Hill Cos., declined on Thursday in reaction to a court decision that rejected the companies’ longtime claim that the First Amendment protected them from lawsuits, according to the Wall Street Journal. The ruling is expected to spur more lawsuits and could apply to structured investment vehicles once valued at as much as $400 billion. McGraw-Hill, which owns Standard & Poor’s, fell 10%, and Moody’s Corp., parent of Moody’s Investors Service, fell 7.1% in New York Stock Exchange composite trading.
Judge Limits Credit Firms’ Defense
Ruling lifts protection for ratings not made public.
September 4, 2009