Goldman Gets Investors' Abacus Suit Cut Down

Law360, New York (June 21, 2012, 11:13 PM EDT) -- A New York federal judge on Thursday trimmed Goldman Sachs Group Inc. shareholders’ suit against the investment bank, preserving their claims about conflicts of interest in Goldman’s now infamous "Abacus" collateralized debt obligation that allegedly resulted in a $1 billion loss to investors.

U.S. District Judge Paul A. Crotty said that the Goldman shareholders, who were not themselves investors of the Abacus CDO and related investments, had sufficiently alleged that Goldman had made a material omission in failing to disclose who selected the doomed assets that...
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