Judge Nixes Hedge Fund's $1.6B Suit Over Goldman CDOs

Law360, New York (July 21, 2011, 4:53 PM EDT) -- A New York federal judge has thrown out a hedge fund's $1.6 billion lawsuit accusing Goldman Sachs Group Inc. of misleading it about the potential of certain collateralized debt obligations, according to an order made public Thursday.

U.S. District Judge Barbara Jones said the Australian-based hedge fund behind the suit, Basis Yield Alpha Fund, failed to show that the sale of the CDOs, known as Timberwolf, took place in the U.S. — a prerequisite to bringing a lawsuit under U.S. securities fraud law.

“Plaintiff fails to...
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