Goldman Exits NY Suit Over Alleged MBS Lies

Law360, New York (April 19, 2013, 2:03 PM EDT) -- A Dutch government employee pension fund has settled its New York state court complaint alleging Goldman Sachs Group Inc. duped investors into buying shoddy mortgage-backed securities, according to a Thursday court filing.

Stichting Pensioenfonds ABP and Goldman filed a stipulation dismissing the case, which claimed the bank failed to perform due diligence on poorly underwritten residential mortgages that were included in securities purchased by the fund and other investors.

Despite knowing that a large portion of the mortgages tied to the securities were destined to fail,...
To view the full article, register now.