Goldman Wins Removal Of Thornburg Trustee's $19M Suit

Law360, New York (January 23, 2012, 7:31 PM EST) -- A Maryland federal judge moved a $19 million lawsuit claiming Goldman Sachs & Co. helped ruin defunct mortgage lender Thornburg Mortgage Inc. out of bankruptcy court on Monday after determining the claims brought by Thornburg's trustee weren't central to the bankruptcy proceedings.

Trustee Joel Sher hit Goldman with the adversary proceeding in April, claiming that in addition to making unjustified margin calls, the investment bank improperly liquidated mortgage-backed securities that secured repurchase agreements with Thornburg, now known as TMST Inc., once the second-largest mortgage lender in...
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