Bloomberg.com is reporting this morning that Connecticut will join a number of states in suing three debt rating agencies for their “negligent, reckless and incompetent work” in grading investments made by state pension funds.
Attorney General Richard Blumenthal told Bloomberg Television in an interview that Connecticut and a few other states are preparing to sue Standard & Poor’s, Moody’s Corp. and Fitch Ratings.
Ohio has already filed suit against the debt rating agencies this month on behalf of five Ohio public employee retirement and pension funds, Bloomberg reports.
Blumenthal also sued credit-rating companies last year, claiming they unfairly gave municipal bonds lower ratings than comparable corporate or structured debt, Bloomberg reports.
