Standard & Poors to settle Calpers lawsuit

Gavel

Standard & Poor’s reached a $125 million lawsuit settlement with the largest U.S. state pension fund over inflated ratings on residential-mortgage bond deals, two people familiar with the matter said.

Bloomberg News reports that S&P will pay the California Public Employees Retirement System, or Calpers, to resolve claims over grades on subprime mortgages during the run-up to the 2008 financial crisis, according to the people, who asked not to be identified because the matter isn’t public.

In multiple accords including the Calpers deal that will be announced Tuesday, S&P and parent McGraw Hill Financial Inc. will pay $1.5 billion in total to resolve similar allegations from the U.S. Justice Department and more than a dozen states, the people said.

Hit the link below to access the complete Bloomberg News article:

S&P Said to Settle Calpers Ratings Lawsuit for $125 Million

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