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Fitch Wins Dismissal of Fraud Claim in New York Supreme Court
- Client News
- August 4, 2015
Practices
Justice Anil Singh of the Commercial Division of the New York State Supreme Court, granted full dismissal of a fraud action brought against Paul, Weiss clients Fitch Group, Inc., Fitch Ratings Inc. and Fitch Ratings Ltd. (FRL) by various overseas funds. The plaintiffs alleged that Fitch, along with S&P and McGraw Hill, fraudulently induced Master Funds, on whose behalf the overseas funds brought suit, to purchase securities by knowingly issuing inaccurate ratings. Fitch moved to dismiss the complaint for failure to state a claim, on the grounds that the plaintiffs' claims were time-barred under New York law, and for lack of standing to sue directly and derivatively on behalf of the Master Funds. FRL, a London-based subsidiary of Fitch Ratings Inc., moved to dismiss for lack of personal jurisdiction. Justice Singh dismissed the plaintiffs' complaint on statute of limitations and standing grounds, as well as FRL on personal jurisdiction grounds.
The Paul, Weiss team included, among others, litigation partners Martin Flumenbaum and Andrew Ehrlich.