Goldman Sachs Rejected by Court on Mortgage Securities
The justices today left intact a federal appeals court ruling that partially backed the NECA-IBEW Health and Welfare Fund, which is pressing the case.
At issue was whether NECA, which bought certificates from two of 17 disputed Goldman Sachs trusts, had legal “standing” to sue on behalf of investors in the other 15 offerings.
The New York-based 2nd U.S. Circuit Court of Appeals said NECA’s claims were similar to those stemming from five other offerings, all of which contained loans made by a Wells Fargo & Co. (WFC) unit and GreenPoint Mortgage Funding Inc. The appeals court said NECA had standing to press those claims, though not any claims concerning the other 10 trusts.
The standing issue is separate from the question of class action status, which the lower courts haven’t yet considered.
The case is Goldman Sachs v. NECA-IBEW Health and Welfare Fund, 12-528.
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