BofA, Goldman, Others Sued Over $239M Worth Of MBS Sales

Law360, New York (March 2, 2012, 4:51 PM EST) -- Mutual funds run by Shay Assets Management Inc. sued Bank of America Corp., Goldman Sachs & Co. and others in New York state court Thursday, claiming they were fraudulently sold over $239 million worth of risky residential mortgage-backed securities.

The suit, which seeks the rescission of the $239 million, as well as additional damages, claims the defendants made several misrepresentations and omissions regarding the securitization and sale of the mortgage-backed securities, some of which the plaintiffs have already sold at a loss.

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