The United States said its $5 billion civil fraud lawsuit against Standard & Poor’s should be tried all at once, rejecting the credit rating agency’s insistence that a single trial would be too big, confusing and unfair.
S&P, a unit of McGraw Hill Financial Inc, was accused of causing losses for federally-insured banks and credit unions by inflating ratings to win more fees from issuers, and being too slow to downgrade debt backed by souring mortgages, contributing to the 2008 financial crisis. Last month, S&P proposed holding two trials, with the first focused on just 17 securities out of the roughly 160 at issue, where Citigroup Inc was alleged to have suffered losses.
In a Monday court filing, US attorney Andre Birotte in Los Angeles said “mini-trials” would “severely prejudice” the US by preventing it from showing “the full and complete nature of S&P’s alleged fraud” to a single jury. He said this would include “great swaths” of evidence that S&P intended to defraud investors that, unlike Citigroup and Bank of America Corp, were not involved in the issuance of securities it rated.
Holding one trial “is particularly necessary to counter S&P’s efforts to focus on isolated employee actions at an individual security level”, Birotte wrote.
He also said two trials would likely violate the 7th Amendment of the US Constitution, by allowing different juries to review many of the same overlapping issues in a single case. S&P has argued that a single trial would force it to present “overwhelming” amounts of evidence to counter the government’s claims that its ratings lacked “independence” and “objectivity”.
- Soon You Could Get Plastic Currency Notes: Find Out More
- Ranveer Singh and Vaani Kapoor Starrer Befikre Gets A Thumbs Up
- Supreme Court Seeks Centre’s Response Over Various Issues Regarding Demonetisation
- Defence Minister Manohar Parrikar Writes To West Bengal CM Mamata Banerjee
- Bigg Boss 10 December 8 Review: Swami Om Feels Cheated, lashes Out At Gaurav For Jail Punishment
- South Korean President Park Geun-Hye Impeached Over Corruption Scandal
- Former Air Chief SP Tyagi Arrested In VVIP Chopper Scam
- After Congress Vice President Rahul Gandhi, Liquor Baron Vijay Mallya’s Twitter Account Hacked
- Find Out What PM Narendra Modi Told Cabinet Over Demonetisation Decision
- Home Minister Rajnath Singh Assures Safety Of All Tourists Stranded On Havelock Island
- Government To Waive Service Tax On Debit, Credit Card Transactions Of Up To Rs 2,000
- President Pranab Mukherjee Criticises Parliament Disruptions Over Demonetisation
- Pakistan International Airlines Flight Carrying Over 40 Passenger On Board Crashes
- Shah Rukh Khan On Raees Clash With Kaabil: It’s Impossible To Have A Solo Release In India
- US-President Elect Donald Trump Named TIME’s Person Of The Year 2016