The attorney General of Illinois Lisa Madigan sued McGraw Hill Cos., Standard & Poor's Financial Services and its business unit Standard & Poor's Ratings Services.
The attorney sued the rating agency and its parent for violating the Illinois Consumer Fraud and Deceptive Business Practices Act. To see full copy of the suit, please click here.
The lawsuit is seeking redress for the rating agency's unfair business practices. Specifically, the state took issue with S&P's misrepresention of its structured finance securities credit analysis.
S&P claims that its analysis of these products is independent and objective, which the AG stated it failed to be under the said Act.
The state is seeking disgorgement and civil penalties.