{"id":5572,"date":"2014-01-22T00:00:00","date_gmt":"2014-01-22T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/01\/goldman_sachs_must_contend_wit"},"modified":"2022-05-05T12:25:01","modified_gmt":"2022-05-05T17:25:01","slug":"goldman-sachs-must-contend-wit","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-must-contend-wit\/","title":{"rendered":"Goldman Sachs Must Contend with Proposed Class-Action CDO Lawsuit"},"content":{"rendered":"\n

U.S. District Judge Victor Marrero says that Goldman Sachs Group Inc. (GS) must face a proposed class action securities case accusing it of defrauding customers that purchased specific collateralized debt obligations at the beginning of the financial crisis. The lead plaintiff, Dodona I LLC, contends that the firm created two Hudson CDOs that were backed by residential mortgage backed-securities even though Goldman knew that subprime mortgages were doing badly. <\/p>\n

The hedge fund claims that Goldman tried to offset its prime risk, even betting that subprime mortgages and the securities constructed around them would lose value\u2014essentially making the CDOs to lower its own subprime exposure and simultaneously shorting them at cost to investors. Dodona purchased $4 million of Hudson CDOs.<\/p>\n

Meantime, Goldman said that the proposed class action case should be dropped and that instead, Hudson CDO claims should be made independently. The bank said that the current case has too many conflicts and differences. Judge Marrero, however, disagreed with the bank. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

U.S. District Judge Victor Marrero says that Goldman Sachs Group Inc. (GS) must face a proposed class action securities case accusing it of defrauding customers that purchased specific collateralized debt obligations at the beginning of the financial crisis. The lead plaintiff, Dodona I LLC, contends that the firm created two Hudson CDOs that were backed […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3804,3742,3752,3947,3757],"tags":[],"class_list":["post-5572","post","type-post","status-publish","format-standard","hentry","category-class-action-lawsuits","category-collateralized-debt-obligation","category-financial-firms","category-goldman-sachs","category-mortgagebacked-securities"],"yoast_head":"\nGoldman Sachs Must Contend with Proposed Class-Action CDO Lawsuit — Investor Lawyers Blog — January 22, 2014<\/title>\n<meta name=\"description\" content=\"U.S. District Judge Victor Marrero says that Goldman Sachs Group Inc. 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