Standard & Poor's is paying about $1.38 billion to settle government allegations that it knowingly inflated its ratings of risky mortgage investments that helped trigger the financial crisis.
The McGraw Hill Financial subsidiary Standard & Poor's Financial Services LLC reached a settlement with the Justice Department over ratings issued from 2004 through 2007.
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The settlement also resolves lawsuits filed by the attorneys general of 19 States and the District of Columbia.
The Justice Department filed civil fraud charges against S&P two years ago this week. It accused the company of failing to warn investors that the housing market was collapsing in 2006 because doing so would hurt its ratings business.
S&P will also pay $125 million in a separate settlement with the California Public Employees' Retirement System.