Monday, 5 November 2012
Australia: Federal Court finds credit rating agency liable for 'misleading and deceptive' AAA rating
Judgment was given today in Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5)  FCA 1200. This is an important decision of the Federal Court of Australia which is attracting international attention because of the trial judge's finding that a credit rating agency was liable for the misleading and deceptive triple A rating it gave to a CPDO (constant proportion debt obligation). The judgment is very long but there is a summary near the start.