Goldman Sachs Sued Over Pass-Through Certificates

Law360, New York (February 10, 2009, 12:00 AM EST) -- A pension fund for Mississippi public employees has hit Goldman Sachs Group Inc. and several of its officers with a proposed class action alleging that the bank misled investors about the risk of mortgage pass-through certificates.

The suit, filed Friday in the U.S. District Court for the Southern District of New York by the Public Employees' Retirement System of Mississippi, also names Standard & Poor's parent McGraw-Hill Cos. Inc., Moody’s Investors Service Inc. and Fitch Inc. for giving the certificates high ratings.

Mortgage pass-through certificates entitle...
To view the full article, register now.