Goldman to face mortgage debt class-action lawsuit

[Eugene]

Source: Reuters

Goldman to face mortgage debt class-action lawsuit

By Jonathan Stempel

Fri Feb 3, 2012 12:37pm EST

(Reuters) - Goldman Sachs Group Inc was ordered by a federal judge to face a securities class-action lawsuit accusing it of defrauding investors about a 2006 offering of securities backed by risky mortgage loans from a now-defunct lender.

U.S. District Judge Harold Baer in Manhattan certified a class-action lawsuit by investors led by the Public Employees' Retirement System of Mississippi.

These investors claimed they lost money in the GSAMP Trust 2006-S2, a $698 million offering of certificates backed by second-lien home loans made by New Century Financial Corp, a California subprime mortgage specialist that went bankrupt in 2007.

Thursday's decision is a setback for Goldman, which had sought to force investors to bring their cases individually.

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http://www.reuters.com/article/2012/02/03/us-goldman-mortgage-lawsuit-idUSTRE81215R20120203

[cottage10]

1. You mean it might be illegal to sell dog crap while telling investors it is a bed of roses? n/t

[Lint Head]

2. So, Goldman may have to pay and not admit guilt while people get the average amount of $10.00

credit toward a new home. That's what usually happens. I been a part of several class action lawsuits.

[Bigmack]

3. My only hope is that the investors ....

... have enough money to hire the same kind of gunslinger lawyers that GS will.

I won't be happy until I see the Big Guys doing the perpwalk and all their possessions going at auction and their children in the streets and their wives turning tricks for food and ..... ooops ... Sorry. Got carried away with a fantasy there for a minute.

[banned from Kos]

4. This is the way its supposed to be done. Civil suits and not the DOJ.

The DOJ has no business poking around contracts like these.