McGraw-Hill Investigated for Company Stock-related Fiduciary Breach

December 18, 2008 ( - The McGraw-Hill Companies, Inc. could find itself facing a participant lawsuit as the Cincinnati law firm of Statman, Harris & Eyrich, LLC has announced an investigation of its retirement plans.

The firm said it is looking for potential violations of the Employee Retirement Income Security Act (ERISA) relating to the McGraw-Hill 401(k) Savings and Profit Sharing Plan and its subsidiary’s Standard & Poor’s 401(k) Savings and Profit Sharing Plan for Represented Employees.

According to the announcement, the investigation focuses on whether McGraw-Hill continued to make and maintain investment in McGraw-Hill stock despite the its failure to disclose that its subsidiary, Standard & Poor’s, had “assigned excessively high ratings to bonds backed by subprime mortgages, had conflicts of interest with respect to such ratings, and otherwise acted recklessly, inappropriately and potentially unlawfully with respect to its ratings of bonds backed by subprime mortgages.”

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