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.
- The Royal Opera House Reopens After Decades Of Neglect: Here’s A Quick Tour
- Tata Sons Rubbishes Cyrus Mistry’s Allegations: Here’s What Happened
- Pakistan High Commissioner denies allegations leveled on his staffer for espionage activities
- Odisha: Villagers Refuse To Cremate Dalit Woman’s Body
- Here’s What Farhan Akhtar Said On Karan Johar-MNS ‘Deal’ Over Ae Dil Hai Mushkil’s Release
- Government’s Diwali Gift to Central Government Employees, Pensioners
- Bigg Boss 10 26th October Review: This Episode Is All About Fights
- New Zealand Beat India By 19 Runs In Ranchi; Series Levelled At 2-2
- DND Toll-Free: Noida Toll Company Moves Supreme Court Against Allahabad High Court
- British PM Theresa May Says Kashmir Is A Matter For India, Pakistan To Sort Out
- J&K: Students Suffer As Schools Along LOC Forced To Shut Amid Firing
- Jayalalithaa’s Health: AIADMK Women Supporters Continue Special Prayers For CM
- HTC Desire 10 Lifestyle First Look Video
- Fissures Remain Within Samajwadi Party: All You Need To Know
- Big Cheer For Delhi-Noida Commuters, DND Flyway Becomes Toll Free
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”.