By Caroline Salas and Matthew Leising
Connecticut plans to join Ohio in suing credit-rating companies for “negligent, reckless and incompetent work” in grading debt purchased by state pension funds, according to Attorney General Richard Blumenthal.
Connecticut and “a number of other states” are preparing legal action against Standard & Poor’s, Moody’s Corp. and Fitch Ratings, Blumenthal said today in a Bloomberg Television interview. Ohio Attorney General Richard Cordray sued the debt raters this month on behalf of five Ohio public employee retirement funds, saying “improper” ratings cost the funds more than $457 million.
Continue reading Connecticut to Sue Rating Firms for ‘Reckless’ Work