Blood In The Water: Investor Bites Back

28 Jul Blood In The Water: Investor Bites Back

Raphael Nach filed suit in US District Court in the Northern District of Illinois alleging Moody’s CEO made false and misleading statements and assigned excessively high ratings to certain subprime mortgage backed bonds, Edvard Pettersson of Bloomberg writes in his column Moody’s Finance Chief Sued by Investor Over Subprime Ratings. This is another of the emerging lawsuits over subprime mortgage defaults and the investors who lost money, a trend predicted by Florida attorney Chip Parker in his blog Suing the Mortgage Industry: Turnabout Is Fair Play.

In mid-July Moody’s downgraded 399 mortgage backed bonds and announced a review of 32 others, affecting approximately $5.2 billion bonds. Pettersson says some bonds fell more than 50 percent without affecting a rating change.

Nach seeks class representation on behalf of similarly situated investors.

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Andy Miofsky, Esq.

Andy Miofsky holds the highest AV PREEMINENT rating from Martindale Hubbell Law Directory and a perfect 10.0 from AVVO. Andy is an Illinois consumer rights lawyer with offices in Granite City Illinois. Andy represents people with bankruptcy and student loan debt problems throughout the Southern District of Illinois since 1979.
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