Goldman Sachs Group Inc. was sued by German lender Bayerische Landesbank and accused of fraud over losses on mortgage-backed securities.
BayernLB, which bought about $511.9 million in securities in 16 offerings that Goldman Sachs underwrote, said the securities were riskier than promised and were “destined to fail,” according to a complaint filed yesterday in New York State Supreme Court.
“BayernLB has suffered significant losses as a result of Goldman Sachs’s fraud,” the lender said.
Goldman Sachs and Citigroup Inc. were sued separately yesterday in the same court over mortgage bonds by IKB Deutsche Industriebank AG. IKB, a German lender, said it sold $137.4 million in Citigroup securities and $73.2 million in Goldman Sachs securities at a loss.
UBS AG, based in Zurich, was also sued in New York state court over losses on mortgage-backed securities. The plaintiff, Sealink Funding Ltd., said in its complaint that the $158.1 million in bonds are either held by Sealink or were previously sold at a loss.
Claims against Citigroup, Goldman Sachs and UBS include fraud and negligent misrepresentation, according to the filings.
Danielle Romero-Apsilos, a spokeswoman for New York-based Citigroup; Michael DuVally, a spokesman for New York-based Goldman Sachs; and UBS spokeswoman Karina Byrne declined to comment on the filings.
The cases are Bayerische Landesbank v. Goldman Sachs Group Inc., 653111-2012; IKB International SA in Liquidation v. Citigroup Inc., 653100-2012; IKB International SA in Liquidation v. Goldman Sachs Group Inc., 653101-2012; and Sealink Funding Ltd. v. UBS AG, 653102-2012, New York State Supreme Court (Manhattan).