For class action securities plaintiffs lawyers, the credit rating agencies have been frustratingly adept at dodging claims over the blessings they bestowed on mortgage-backed securities. They’ve won dismissals on different grounds since the subprime meltdown, but the agencies’ trump card has been the First Amendment, which they’ve successfully used as a shield against allegations that they misled investors. Now, finally, plaintiffs in a New Mexico securities class action have managed to pierce the rating agencies’ First Amendment armor.
