Goldman fails to dismiss lawsuit

Goldman Sachs yesterday lost its bid to dismiss a lawsuit accusing it of defrauding investors by selling risky debt linked to subprime mortgages that it planned to bet against. The decision by US district judge Victor Marrero in New York keeps alive a hedge fund’s claims over a $2bn offering of collateralised debt obligations. Marrero said the hedge fund Dodona I LLC may pursue nearly all its claims against Goldman.