By Dale Kasler The Sacramento Bee
Published: Thursday, May. 6, 2010 – 12:00 am | Page 8B
Last Modified: Thursday, May. 6, 2010 – 8:07 am

CalPERS has won a key court ruling in its lawsuit against Wall Street’s leading credit-rating agencies over $1 billion worth of failed investments.

A San Francisco Superior Court judge has rejected the rating agencies’ bid to have the suit tossed out, said CalPERS spokesman Brad Pacheco. However, the judge dismissed one of CalPERS’ claims.

Last summer CalPERS sued Moody’s Investors Service, Standard & Poor’s and Fitch Ratings, blaming them for a string of investments that cost CalPERS at least $1 billion.

The suit says the California Public Employees’ Retirement System was essentially duped into the deals by “wildly inaccurate and unreasonably high” ratings assigned by Moody’s, Fitch and S&P.

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