Moody's controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
European Union conflict-of-interest settlement
Moody's reached a settlement with the European Union regarding conflicts of interest and paid a reported €3.7 million fine.
2021
EU fines Moody’s entities for rule breaches
Fine or penalty
The European Union markets watchdog fined five Moody’s entities based in France, Germany, Italy, Spain and the UK €3.7 million for rule breaches, including failing to disclose conflicts of interest. ESMA said the breaches resulted from negligence.
Source excerpt
"ESMA found that Moody's Investors Service had no intent to infringe the EU regulation and there was no impact on the quality of any ratings," a Moody's spokesperson said in an e-mailed statement to Reuters.
The European Union's markets watchdog said today it has fined credit ratings firm Moody's €3.7m for breaching rules including the failure to disclose conflicts of interests.
It added that the fine was for five Moody's entities based in France, Germany, Italy, Spain and Britain.
2017
U.S. settlement concerning pre-financial-crisis ratings conduct
Moody's agreed to an $863 million settlement with the U.S. Department of Justice, 21 states, and the District of Columbia. The matter concerned allegations related to ratings for residential mortgage-backed securities and collateralized debt obligations before the global financial crisis.
2013
Crisis-era structured-investment-vehicle litigation
Moody's settled litigation brought by plaintiffs including Abu Dhabi Commercial Bank and King County, Washington. The claims alleged that Moody's had misled purchasers by assigning inflated ratings to two structured investment vehicles.
2012
Shareholder litigation over structured-finance ratings
The company reached a settlement with shareholders in lawsuits concerning ratings assigned to structured-finance products.
2011
Connecticut public-bond rating claims
Moody's settled claims brought by the state of Connecticut alleging that the rating company had treated public bonds unfairly by assigning lower ratings.