German Bank Asks 2nd Circ. To Revive Goldman Fraud Suit

Law360, New York (March 30, 2012, 6:07 PM EDT) -- German bank Landesbank Baden-Wuerttemberg on Friday asked the Second Circuit to reopen a fraud suit alleging Goldman Sachs & Co. tricked it into buying $37 million in mortgage-linked securities, arguing its claims are strong enough to warrant a second look.

Landesbank wants to recover the $37 million it invested in 2006 in a collateralized debt obligation called Davis Square Funding VI, a complicated security backed by bundled mortgages and sold to sophisticated investors.

Like many financial products that ultimately were backed by mortgages, Davis Square saw...
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