NU Online News Service, June 27, 1:39 p.m.EDT

Rating agencyMoody’s says a recent Supreme Court ruling in favor of Wal-Mart—andthe high burden of proof it puts on future plaintiffs—is creditpositive for corporate America, including insurers of corporateliability.

In its weekly credit outlook Moody’s says the decision to deny class-action status to a group of current andformer female Wal-Mart employees alleging gender discriminationwill also be positive for employment practices, errors andomissions, and general liability insurers.

The class of about 1.5 million women would have been the largestin U.S. history if it had been certified.

“Under the certification rules articulated by the high court,pursuit of class actions on the scale of Wal-Mart will become farmore difficult, substantially reducing the specter of hugesettlement or judgment costs for large employers and theirinsurers,” Moody’s says.

Moreover, due to the interpretations and clarifications made bythe Supreme Court, it could be more difficult to bring securitiesfraud or product liability cases before the court.

The Supreme Court says plaintiffs must prove merits of the casebefore certification and it has to be “convincing.”

The female employees of Wal-Mart can still pursue legal actionindividually or in smaller class actions, but Moody’s expects “suchalternate litigation paths will ultimately be less costly for bothdefendants and their insurers.”