Goldman Must Face $1B NY State Suit Over CDO Sales

Law360, New York (January 30, 2014, 7:00 PM EST) -- A New York state appeals court on Thursday unanimously upheld a New York state judge's 2012 decision to largely preserve a $1 billion suit over collateralized debt obligation-related securities Goldman Sachs Group Inc. sold to a client in 2007 before allegedly betting against them.

A five-judge panel for the New York Supreme Court’s Appellate Division rejected Goldman’s bid to toss the case brought by Basis Yield Alpha Fund, ruling that disclaimers in the securities offering didn’t cover the alleged misrepresentations Goldman made when it structured, marketed...
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