John Roesser and Victoria Shin Published in Law360
"A Pass for Lehman Rating Agencies"

Seyfarth Shaw New York partner John Roesser and associate Victoria Shin were published in Law360 on May 31. Their article discussed an affirmation by Second Circuit of the dismissal of three class action cases by the district court regarding the purchase of $155 billion in mortgage pass-through certificates between 2005-2007, and it examines the reasoning behind the both courts' decisions.

John and Victoria provided some background on the cases in which the plaintiffs alleged that ratings agencies (Standard & Poors, Moody's and Fitch) "actively participated in the structuring and securitization process" and acted as "underwriters," which would make them liable under Section 11(a)(5) of the Securities Act of 1933. The district court stated that the ratings agencies were not, by definition, acting as "underwriters," and they did not direct the issuers or sellers on what to do.

Additionally, John and Victoria stated that the courts held that the ratings agencies were not liable as "control persons" under Section 15 of the Securities Act of 1933, as they did not have "the power to direct or cause the direction of the management and policies."

Click here to read the full article: http://www.law360.com/articles/247046/a-pass-for-lehman-rating-agencies