Judge Greenlights Suit Over Goldman's Double-Dealing

Law360, New York (March 21, 2012, 4:43 PM EDT) -- An investor class action claiming Goldman Sachs Group Inc. bet against its own products can go forward, a federal judge ruled Wednesday in an opinion critical of the giant's allegedly “cynical” conduct in the run-up to the financial crisis.

U.S. District Judge Victor Marrero ruled that hedge fund Dodona I LLC can pursue almost all of its claims related to $1.2 billion worth of Goldman-created collateralized debt obligations that became junk as their underlying assets collapsed.

The decision repudiates Goldman's theory that it was legal to...
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