In a preliminary ruling ahead of a final decision scheduled for July 15, a federal judge permitted the Justice Department to proceed with its lawsuit against Standard & Poor’s. The lawsuit alleges that the rating agency defrauded customers by inflating credit ratings. The DOJ is arguing that S&P lied to customers when claiming its ratings were objective and not affected by conflicts of interest. S&P claimed that statements about the integrity of its ratings were "puffery" and hence could not constitute fraud.
Published in Brief: