Judge Won't Consider Senate Report In $1.6B Goldman Suit

Law360, New York (May 18, 2011, 3:51 PM EDT) -- A federal judge in New York on Wednesday refused to consider a recent U.S. Senate report criticizing Goldman Sachs Group Inc.’s subprime sales practices in deciding whether to dismiss an Australian hedge fund’s $1.6 billion fraud suit against the company.

In response to Goldman’s effort to dismiss the claims for lack of jurisdiction, Basis Yield Alpha Fund urged U.S. District Judge Barbara Jones to look at the Senate report’s discussion of the collateralized debt obligation known as Timberwolf 2007-1, the allegedly designed-to-fail security that forced the...
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