The largest public pension fund in the US has sued the three biggest rating agencies over wildly inaccurate credit ratings.
The lawsuit focuses on structured investment vehicles, of which Calpers bought USD1.3 billion in 2006. By 2008 there were near enough worthless, despite the AAA ratings given by the rating agencies.
Moodys, Standard & Poors and Fitch have been accused of negligent misrepresentation by Calpers, with the ratings being proved to be wildly inaccurate and unreasonably high.
Calpers has not specified the size of the damages it is seeking.