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Whistleblower Lawsuit Filed Against Moody’s Corp

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A whistleblower lawsuit has been filed in U.S. District Court, Southern District of New York against Moody’s Investors Service and parent company Moody’s Corp which claims the company violated the Sarbanes-Oxley corporate governance law through employment actions.

The whistleblower lawsuit was filed by Ilya Eric Kolchinsky, and got the go-ahead by U.S. District Judge Paul Crotty who ruled that, “Kolchinsky has sufficiently alleged that Moody’s took ‘unfavorable personnel action’ against him after he reported what he believed were potential violations of the federal securities laws and SEC rules.”

Judge Crotty dismissed other claims by Kolchinsky that charged Moody’s with defamation, and intentional infliction of emotional distress. Kolchinsky also claimed that Moody’s tried to blacklist him in the industry, CNBC reported.

Moody’s spokesperson Michael Adler said, “We are extremely pleased that the court dismissed all but one of the plaintiff’s claims, and we are confident that we will prevail on the remaining claim once the court has looked at all of the facts.”

The lawsuit said Kolchinsky was fired after he questioned Moody’s credit rating methods, including the high rating assigned to risky mortgages. He alleges the company cut his salary, and bonuses, then excluded him from meetings, and removed promotion opportunities.

 

breakinglawsuitnews.com disclaimer: This article: Whistleblower Lawsuit Filed Against Moody’s Corp was posted on Wednesday, February 29th, 2012 at 9:25 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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