Goldman investors allowed to proceed as group in lawsuit

Goldman Sachs Blink

Goldman Sachs investors who claim they were harmed by conflicts of interest related to collateralized debt obligation transactions won permission to pursue their lawsuit as a group.

Bloomberg News reports that a Manhattan federal judge on Thursday granted class-action status to the shareholders, saying they met legal requirements, with numerous members and claims typical of the group.

The investment bank created and sold CDOs linked to subprime mortgages in early 2007, as the U.S. housing market faltered, without disclosing that hedge fund Paulson & Co. helped pick the underlying securities and bet against one of the vehicles, known as Abacus, the SEC claimed.

To access the complete Bloomberg News article hit the link below:

Goldman Sachs Investors Can Proceed as Group in CDO Lawsuit

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