AUGUSTA, Maine - Maine Attorney General Janet Mills has announced the largest ever one-time settlement in Maine history.
Mills filed papers today with the Superior Court settling the state’s complex lawsuit against Standard & Poor’s - or S&P.
The lawsuit, originally filed two years ago in Kennebec Superior Court, alleged that the credit ratings giant engaged in unfair and deceptive trade practices in connection with its ratings during the time leading up to the financial crisis of 2008.
"What they were in fact doing, as we allege across the country, was getting fees back for inflating those ratings," Mills said. "And in reliance on those ratings, many investors bought residential mortgage-backed securities which then pushed up the residential mortgage market - it encouraged people to write mortgages where they were not credit-worthy instruments."
The $1.375 billion settlement was negotiated in conjunction with the federal Department of Justice and 19 states and the District of Columbia.
Maine's share amounts to $21.5 million dollars that will be dedicated to consumer protection efforts.