GOLDMAN Sachs Group suffered a defeat yesterday as the US Supreme Court let stand a decision forcing it to defend against claims it misled investors about mortgage securities that lost value during the 2008 financial crisis.
Without comment, the court refused to consider Goldman’s appeal of a September 2012 decision by the 2nd US Circuit Court of Appeals in New York.
That court’s action lets the NECA-IBEW Health & Welfare Fund, which owned some mortgage-backed certificates underwritten by Goldman, sue on behalf of investors in certificates it did not own, but that were backed by mortgages from the same lenders. Goldman declined to comment. The case is Goldman Sachs & Co et al v. NECA-IBEW Health & Welfare Fund, US Supreme Court, No. 12-528.
City A.M. Reporter