The U.S. Justice Department brought suit against Standard & Poor’s Rating Agency (“S&P”), alleging that S&P did not follow its standards to rate subprime mortgage bonds that crumbled in the financial crisis of 2008 and cost investors billions. This is the first federal enforcement action against a credit rating firm concerning the financial crisis. The government’s case is based on e-mails and various communications that allegedly show that S&P officials knew the housing market was collapsing. State attorneys general have also filed parallel lawsuits. S&P has denied wrongdoing.