Judge Rejects Move by Goldman's Tourre to Toss Suit
U.S. District Judge Barbara S. Jones today dismissed Tourre’s motion seeking a judgment in the case. He had argued that the SEC can’t sue him over a Goldman Sachs deal involving collateralized debt obligations because the transaction didn’t take place in the U.S.
In the same order, Jones said the SEC can file an amended complaint by Nov. 22.
“Defendant Tourre’s motion for judgment on the pleadings is dismissed without prejudice and with leave to renew after plaintiff has filed its amended complaint,” Jones wrote.
The U.S. Supreme Court ruled in June that U.S. securities laws don’t apply to claims of foreign buyers of non-U.S. securities on foreign exchanges, lawyers for the Goldman executive director said in a court filing in September. The collateralized debt obligations, known as Abacus, at issue in the SEC’s complaint weren’t listed on any exchange and the sole investor in the notes was a foreign bank that bought them overseas, according to the filing.
Jones said that, because the SEC sued before the Supreme Court decision came out in June, the agency can file an amended complaint.
The case is SEC v. Goldman Sachs, 10-CV-3229, U.S. District Court, Southern District of New York (Manhattan).
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