February 05, 2013 03:01 PM UTC

Colorado Joins S&P Fraud Lawsuit Bandwagon

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• by: Phoenix Rising

(promoted by PCG)

The Associated Press (via the Houston Chronicle) is reporting that Colorado Attorney General Suthers has filed suit on behalf of the state against Standard & Poors for fraudulently inflating the ratings of risky derivatives investments in the years leading up to the Great Recession.

Colorado joins the Federal government and at least twelve other states in filing lawsuits against the ratings agency today. Colorado's suit was filed in the Denver District court.

The article claims that the Federal government seeks at least $5 billion in damages from S&P, but reports yesterday are that the government was negotiating for at least $8 billion when talks broke down. No details are provided on additional state damage amounts.