Liberty Mutual Sues Goldman Over Fannie Mae Stock

Law360, New York (July 9, 2010, 2:06 PM EDT) -- Liberty Mutual Insurance Co. has accused Goldman Sachs & Co. of misleading investors in connection with two stock offerings by Fannie Mae in 2007.

The insurer filed suit Thursday in the U.S. District Court for the District of Massachusetts, arguing that it invested $62.5 million in Fannie Mae based on Goldman's misrepresentation of the mortgage guarantor's financial health.

Those investments are now worthless, the complaint claims.

The suit, which alleges violations of the Exchange Act and various state laws, seeks compensation for any investment losses through...
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