S&P faces $100m class action

Standard & Poor's faces a class action worth more than $100 million over its decision to stamp top-notch credit ratings on complex products that inflicted hefty losses on local councils.

Standard & Poor's faces a class action worth more than $100 million over its decision to stamp top-notch credit ratings on complex products that inflicted hefty losses on local councils.

In a move tipped to pave the way for similar actions overseas, a group of 90 councils, churches and charities filed a legal claim against the credit rating agency in the Federal Court on Tuesday.

IMF (Australia), funding the action, will allege S&P misled the small investors when it said its ratings were independent.

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