InvestSMART

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.

Join the Conversation...

There are comments posted so far.

If you'd like to join this conversation, please login or sign up here

Related Articles