Aussie Fund Seeks $1B From Goldman Over Toxic Assets

Law360, New York (October 28, 2011, 2:12 PM EDT) -- An affiliate of Australian hedge fund Basis Capital Funds Management Ltd. has filed a new lawsuit against Goldman Sachs Group Inc. seeking more than $1 billion in damages for the alleged sale of subprime mortgage-related debt that eventually tanked, the fund said Thursday.

The Basis Yield Alpha Fund, which liquidated in 2007, said Goldman sold it two distressed securities linked to subprime debt to get them off the bank's books and then bet against them, the fund said in a statement. Basis alleges fraud and breach of contract, among other...
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