Moody's Shares Fall as Justice Department Eyes Investigation

Moody's (MCO) - Get Report shares were lower Friday on word that the Justice Department is preparing a civil complaint alleging the company violated federal law leading up to the financial crisis. The complaint alleges that the ratings service violated the Financial Institutions Reform, Recovery and Enforcement Act when it improperly rated residential mortgage-backed securities and collateralized debt obligations in the period leading up to the crisis. Moody's says it is responding to all subpoenas and inquiries in the investigation. The company also reported third quarter results before the opening bell today. Moody's reported earnings of $1.34 a share on revenue of $917.1 million, beating Wall Street's forecasts. For the full year, the company expects earnings between $4.62 and $4.72 a share, which is higher than its prior outlook.