Investment Rating Service’s Anti-SLAPP Motion Denied.

An investment rating service brought an anti-SLAPP motion [Code of Civil Procedure section 425.16] in an action filed by the California Public Employees Retirement System [CalPERS] for its ratings of three structured investment vehicles [SIVs] which later collapsed and caused billions in losses. The trial court denied the motion. The appellate court affirmed, noting that the action was indeed speech, and, thus, based upon protected conduct, but that the investment service did not show a probability of prevailing on the merits. The appellate court stated: “We thus agree with CalPERS that the record supports an inference that the ratings were not merely predictions regarding the SIV’s future value, but affirmative representations regarding the present state of their financial health and more specifically, regarding their capacity to provide payments to investors as promised.” (California Public Employees’ Retirement System v. Moody’s Investors (Cal. App. First, Div. 3; May 23, 2014)226 Cal.App.4th 643, [172 Cal.Rptr.3d 238].)