World Economy

Suit Settled

Suit SettledSuit Settled

Standard & Poor’s has reached a $125 million settlement with California’s public pension system, Calpers, to resolve a case involving inflated grades of residential mortgage deals that later faltered, Reuters quoted the Wall Street Journal as reporting, citing people familiar with the situation. The lawsuit stems from losses the pension fund suffered after the housing market collapsed and formerly AAA-rated securities that were backed by pools of residential mortgages defaulted. The California Public Employees Retirement System, or Calpers, the largest pension fund in the United States, brought the lawsuit against S&P in 2009. Calpers also named Fitch Ratings and Moody’s Investors Service in the lawsuit.