Goldman Can't Escape Hedge Fund's $1B Suit Over CDO Sales

Law360, New York (October 19, 2012, 9:23 PM EDT) -- A New York state judge on Friday mostly preserved a $1 billion suit over collateralized debt obligation-related securities Goldman Sachs Group Inc. sold in 2007 to a fund managed by Australia-based Basis Capital Funds Management Ltd. before allegedly betting against them.

New York Supreme Court Judge Shirley Werner Kornreich partly denied Goldman's motion to dismiss the suit, dropping breach of contract and breach of the implied covenant of good faith and fair dealing claims by plaintiff Basis Yield Alpha Fund, but retained other claims including those...
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