Goldman Dodges Insurer's $63M MBS Suit In 2nd Circ.

Law360, New York (May 15, 2013, 12:21 PM EDT) -- The Second Circuit on Wednesday refused to revive a $62.5 million Liberty Mutual Insurance Co. suit alleging Goldman Sachs & Co. hid Fannie Mae’s exposure to toxic loans while underwriting the mortgage giant's securities deals in 2007, calling the case a "classic example of pleading fraud by hindsight."

A three-judge panel said a New York federal court was correct to toss claims the investment bank drafted and disseminated offering documents for transactions in September and December 2007 that made false claims about Fannie Mae’s capital, while...
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