NEW YORK (AP) — Ratings agencies Standard & Poor's, Moody's and investment bank Morgan Stanley have settled two lawsuits dating back to the financial crisis that accused them of hiding risky investments.
The lawsuits from King County in Washington state and Abu Dhabi Commercial Bank claimed that the ratings agencies and Morgan Stanley hid the risk of investing in a fund that purchased bonds backed by subprime mortgages.
Judge Shira Scheindlin dismissed the lawsuits on Friday, in federal court in New York, with prejudice, which means they can't be filed again.
Spokesmen for the McGraw-Hill Cos., which owns S&P, Moody's Corp. and Morgan Stanley confirmed the settlements but did not disclose terms.
"This settlement allows us to put the significant legal defense and related costs, as well as the distraction, of these very protracted litigations behind us," said Moody's spokesman Michael Adler in an emailed statement. "We are satisfied that it is in the best interests of our company and shareholders."
McGraw-Hill spokesman Jason Feuchtwanger said the cases were settled without any admission of liability or wrongdoing.