IMF Australia Limited
(ASX:IMF) led action group has won its Federal Court case against ratings agency Standard & Poors (S&P) and two other defendants.
The court found the credit ratings agency was misleading and deceptive in its rating of two structured debt transactions in 2006.
The plaintiff group consisting of 12 municipal councils claimed they lost $15 million of the $16 million they invested in ‘Rembrandt notes’ which the S&P rated as AAA.
IMF says it expects to generate a profit of about $8 million from its investment in the case. It is the largest litigation funder in Australia.
IMF Australia generated a full year net profit of $43 million.
