Goldman Sachs Investors Win Right to Sue as Group Over CDOs
- Shareholders claim in 2010 case bank didn’t disclose conflicts
- Ruling is a procedural victory for shareholder plaintiffs
Goldman Sachs Group Inc. headquarters in New York City.
Photographer: Christopher Lee/BloombergThis article is for subscribers only.
Goldman Sachs Group Inc. shareholders won a ruling allowing them to proceed as a group in a $13 billion lawsuit claiming the bank defrauded them by failing to disclose conflicts of interest related to investments linked to risky mortgages it sold before the financial crisis.
U.S. District Judge Paul A. Crotty in Manhattan granted the shareholders’ request to certify the case as a class action, dealing a blow to the company’s efforts to avoid further liability for the investments at issue, including the infamous Abacus collateralized debt obligation.