Fitch Obtains Dismissal of Claims in CalPERS's $1 Billion Ratings Suit

August 26, 2011

On August 26 the California Public Employees’ Retirement System (“CalPERS”) dismissed with prejudice its claims pending in California state court for negligent misrepresentation against Cleary Gottlieb’s clients Fitch and Fitch Ratings. CalPERS claimed over $1 billion in losses in AAA rated investments in litigation brought in California against Fitch and the other two major rating agencies. CalPERS’s agreement to dismiss came following the filing of Fitch’s brief in support of its motion under California’s anti-SLAPP statute (a statute requiring a showing of merit in suits involving speech on matters of public concern and providing for the award of attorney’s fees to a successful movant). Under that agreement, Fitch is making no payment, waiving any claim to attorney’s fees and providing certain discovery that it has provided as a third-party witness in a related case. CalPERS’s case proceeds against the two other rating agencies.