District Judge Jed Rakoff dismissed a lawsuit against Standard & Poor's and Moody's Investors Service brought by investors who said they relied on the agencies' credit ratings in buying $63 billion in mortgage-backed securities. The judge also dismissed claims against Bank of America, JPMorgan Chase, Merrill Lynch and other financial institutions. "The likely reason to come from Judge Rakoff's opinion will be important to many defendants in financial-crisis litigation," said Jamie Wareham, an attorney at Paul, Hastings, Janofsky & Walker. "The disclosures were adequate, and the market knew of the risks associated with subprime products."
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