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Korean Insurer Hits Goldman With $47M Securities Suit

Law360 (March 18, 2011, 4:19 PM EDT) -- South Korea's Heungkuk Life Insurance Co. Ltd. sued Goldman Sachs Group Inc. for $47.3 million on Thursday in New York, claiming the financial giant deliberately dumped risky residential mortgage-backed securities on investors knowing that "huge profits" would flow to Goldman when the assets inevitably failed.

Heungkuk's suit, lodged in the U.S. District Court for the Southern District of New York, seeks rescission of a sales contract for the securities, damages and interest.

Goldman defrauded Heungkuk by misrepresenting a Goldman-structured collateralized debt obligation known as Timberwolf I...
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