Goldman Sachs Seeks To Toss Basis’ $1.6B Suit

Law360, New York (September 3, 2010, 5:01 PM EDT) -- Goldman Sachs Group Inc. has argued that Basis Yield Alpha Fund can’t bring its $1.6 billion suit in the U.S. alleging Goldman’s sale of subprime mortgage-backed securities drove the Australian hedge fund into insolvency because the transaction occurred in Australia.

The investment bank pressed the U.S. District Court for the Southern District of New York on Wednesday to toss the suit, alleging that Basis executed the transaction in Australia and the resulting credit default swaps were in written contracts governed by English law.

Basis lodged its...
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