Shareholder Sues Moody's Over Subprime Ratings

A union filed a shareholder lawsuit against Moody's on Wednesday claiming the rating agency did not tell investors it "assigned excessively high ratings" to bonds backed by subprime mortgages.

The suit, filed in U.S. district court in Manhattan on behalf of the Teamsters Local 282 Pension Fund, claims Moody's role in rating the subprime loan securities hurt the rating agency's stock price.

The suit, which also names Moody's chief financial officer, Linda Huber as a defendant, is seeking class action status.

A Moody's spokeswoman was not immediately comment on the lawsuit.