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S&P, Moody’s Must Face Calpers Lawsuit Over Ratings, Judge Rules

Standard & Poor’s and Moody’s Investors Service Inc. must face California Public Employees’ Retirement System’s $1 billion lawsuit over their ratings of structured investment vehicles, a judge said.

The pension fund “produced sufficient evidence” that the ratings companies made misrepresentations “without reasonable grounds” to believe they were telling the truth, state court Judge Richard Kramer in San Francisco said in a ruling yesterday.