S&P open to paying up to $1 billion to settle DOJ lawsuit
Standard & Poor’s Ratings Services decided to settle a pending lawsuit with the U.S. Department of Justice (DOJ) and is open to paying about $1 billion to settle it, the Wall Street Journal reported citing people familiar with the matter.
The DOJ filed a $5 billion lawsuit against S&P, a unit of McGraw Hill Financial Inc, in February 2013 accusing the agency of inflating ratings for mortgage bonds to boost fees from issuers.
While a settlement of $1 billion would fall short of the $5 billion sought by the Justice Department, the ratings agency does not want to admit wrongdoing, the Journal said citing the people.
S&P had earlier called the lawsuit “meritless” and said the DOJ was wrong in its claim that the ratings were “motivated by commercial considerations.”
Representatives of S&P and the DOJ were not immediately available for comment.
(Reporting by Abinaya Vijayaraghavan in Bangalore; Editing by Eric Walsh)
Source: Reuters
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