Blankfein, Goldman Directors Shake Investors' MBS Suit

Law360, New York (August 14, 2012, 7:29 PM EDT) -- A New York federal judge on Tuesday tossed a putative class action by investors accusing the Goldman Sachs Group Inc. board,  including CEO Lloyd Blankfein, of allowing the firm to mishandle government bailout money, robo-sign thousands of foreclosure documents and knowingly sell mortgage-backed securities that did not comply with underwriting standards.

U.S. District Judge William Pauley III found that the shareholders had failed to prove that Goldman board members ignored any specific red flags that would have alerted them to the fact that the firm was...
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