Blackstone, Goldman Escape Junk Insurance Case

Law360, Los Angeles (August 19, 2011, 6:07 PM EDT) -- A California state judge on Friday threw out the government’s claims against Blackstone Group LP and Goldman Sachs Group Inc. that alleged a fraudulent scheme by HealthMarkets Inc. to sell junk insurance to California consumers.

“Suppose I wanted to buy 10 percent of Enron back in their salad days, and suppose I knew what 'Kenny Boy' Lay was doing,” Judge Anthony J. Mohr told attorneys for the city of Los Angeles, pressing them on their theory that Goldman’s minority ownership of HealthMarkets put it on the...
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