Simpson Thacher Helps Moody's Defeat an Injunction Imposed by Brazilian Court
05.21.09
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On May 7, 2009, Banco Prosper S.A., a Brazilian bank headquartered in Rio de Janeiro, obtained an emergency ex parte injunction in the Courts of Rio de Janeiro against our client, Moody’s Investor Service, enjoining Moody’s from downgrading its existing rating of Banco Prosper.
Simpson Thacher acted as U.S. counsel to Moody's in connection with a petition filed by Brazilian counsel Machado, Meyer, Sendacz e Opice Advogados petitioning the Brazilian court to vacate the injunction on an expedited basis on the grounds that it violated Moody’s contractual rights to monitor and revise its ratings independent of the rated entity, and effectively aided and abetted Banco Prosper’s efforts to mislead the investing public as to Moody’s current rating opinion of the Bank’s creditworthiness.
By order issued on May 18, 2009, the judge adopted Moody’s arguments in their entirety and vacated the Court’s previously issued injunction.
The Simpson Thacher team members who worked on the case are Robert Smit, Tyler Robinson and Ana Carolina Viana.