Summary
This 8-K filing from The McGraw-Hill Companies, Inc. (now S&P Global Inc.) on February 5, 2013, primarily addresses the filing of a civil complaint by the Department of Justice (DOJ) against the company and its subsidiary, Standard & Poor's Financial Services LLC (S&P). The DOJ alleges violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 concerning S&P's ratings of certain U.S. collateralized debt obligations and its rating models for structured finance products between 2004 and 2007. The company and S&P firmly believe these allegations are without merit and have stated their intention to vigorously defend against the litigation. This development is significant for investors as it introduces potential legal and financial risks, including possible fines and reputational damage, although the company maintains a strong defense stance. The filing also notes notification of related state lawsuits.
Key Highlights
- 1DOJ files civil complaint against The McGraw-Hill Companies and S&P on February 4, 2013.
- 2Allegations relate to S&P's ratings of U.S. collateralized debt obligations and rating models for structured finance products between 2004-2007.
- 3The lawsuit is based on alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
- 4The company and S&P intend to vigorously defend against the DOJ's allegations, asserting they are without merit.
- 5The company was notified of related state lawsuits.
- 6A press release regarding the complaint filing was issued on February 5, 2013, and is included as an exhibit.