[ by Melanie Gretchen ]

Standard and Poor's is bracing itself and wasting no time in preparing for its defense - against the $5 billion lawsuit filed this week by the federal government.  Others lawsuits are sure to follow, including the class action that is being formed by a group of state attorneys general.

Accordingly, S&P has hired the top-gun, high-profile white-collar defense attorney, John Keter,   Mr. Keter has represented such clients as Lance Armstrong and former Enron CFO Andrew Fastow.  In its complaint, the government accuses the company's McGraw Hill Cos Inc unit participated in a scheme to defraud investors in mortgage-related securities that collapsed in the financial crisis.

Mr. Keter has represented S& P in the past - using his expertise in First Amendment law to defend S&P in dozens of lawsuits over issued ratings.  In his defense of Fastow, considered the mastermind of Enron's fraud, he secured for the former executive only 6 years in prison.  At S&P, he was hired at the recommendation of Floyd Abrams, a prominent New York attorney who also represents the ratings firm.  In its defense, Standard & Poor's has said the lawsuit is "without legal merit and unjustified."  Mr. Abrams said bringing Keker onto the team was an indication that "we are going to be more than ready, if necessary, to have a trial."

The case: United States of America v. McGraw-Hill Companies Inc, U.S. District Court, Central District of California, No. 130-00779.

For further details, go to [Reuters, 2/7/13].