Moody's Corporation

Case Details

Class Period:
Date Filed:
June 27, 2008
Case Number:
Southern District of New York

Case Summary

After filing initial complaint with the Superior Court of New York on June 27, 2008 and litigating as Co-Lead Counsel for four years, the parties entered into a settlement agreement on the shareholder derivative action on May 17, 2012. The derivative complaint alleged that the defendants issued improper ratings based on clients' satisfaction and improper, out-of-date models (including thousands of triple-A ratings) rather than the ratings the instruments deserved. By making favorable credit ratings available for a price, Defendants caused Moody's to reap vast financial gains. After the Final Settlement Hearing, the Honorable George B. Daniels of the Southern District of New York granted final approval of the settlement on September 6, 2012.