Comments on: Audit Integrity vs. Hertz, Round 2 http://www.integrity-research.com/cms/2009/10/13/audit-integrity-vs-hertz-round-2/ Tracking developments in the research industry Mon, 01 Aug 2011 14:06:50 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Trey http://www.integrity-research.com/cms/2009/10/13/audit-integrity-vs-hertz-round-2/comment-page-1/#comment-732 Trey Mon, 19 Oct 2009 18:07:56 +0000 http://www.integrity-research.com/cms/?p=1958#comment-732 I would concur that all analogous precedents on similar cases would indicate that Hertz cannot win this lawsuit. Mr. Zimmerman, Hertz' counsel, must understand this to be the case. Ergo, Hertz must want something else - either an apology from Audit Integrity which seems unlikely - or to force Audit Integrity to spend so much money defending such a lawsuit as to jeopardize its viability. As you point out, by electing not to countersue and by asking the SEC to investigate attempted coercion instead, Audit Integrity seems to be minimizing its own financial risk. It will be interesting to see whether the SEC will, in truth, embark in such an investigation. If it does not do so, Ms. Schapiro will risk having her published statements in support of firms using independent research to corroborate or supplement Moody's ratings dismissed as empty political promises-as-usual. Thank you for posting this column and calling attention to this issue. I would concur that all analogous precedents on similar cases would indicate that Hertz cannot win this lawsuit. Mr. Zimmerman, Hertz’ counsel, must understand this to be the case. Ergo, Hertz must want something else – either an apology from Audit Integrity which seems unlikely – or to force Audit Integrity to spend so much money defending such a lawsuit as to jeopardize its viability.

As you point out, by electing not to countersue and by asking the SEC to investigate attempted coercion instead, Audit Integrity seems to be minimizing its own financial risk. It will be interesting to see whether the SEC will, in truth, embark in such an investigation. If it does not do so, Ms. Schapiro will risk having her published statements in support of firms using independent research to corroborate or supplement Moody’s ratings dismissed as empty political promises-as-usual.

Thank you for posting this column and calling attention to this issue.

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