Goldman Sachs Must Face Fraud Claims in Timberwolf Suit
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Goldman Sachs Group Inc. must face fraud claims in a $1 billion lawsuit filed by an Australian hedge fund over the sale of collateralized debt obligations sold by the bank ahead of the financial crisis, a New York state appeals court ruled.
An appellate court in Manhattan today upheld state Supreme Court Justice Shirley Werner Kornreich’s October 2012 denial of Goldman Sachs’s motion to dismiss the fraud claims, while modifying it to throw out claims of negligent misrepresentation, unjust enrichment and rescission.