S&P Settles Landmark Derivatives-Rating Lawsuit in Australia

S&P Settles Landmark Derivatives-Rating Lawsuit in Australia
File Photo: A broker looks at his screens at Frankfurt's stock exchange on September 15, 2008, in the wake of US investment banking giant Lehman Brothers filing for bankruptcy amid the global financial crisis.Thomas Lohnes/AFP/Getty Images
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SYDNEY—Standard & Poor’s said on Aug. 10 it has settled a lawsuit in Australia over claims by pension funds and local governments that the credit rating firm had overlooked risks when awarding high ratings to opaque investments that imploded in the global financial crisis.

Australia’s Federal Court approved the settlement on Aug. 9, S&P said in an emailed statement which did not disclose the settlement sum or terms.