{"id":6008,"date":"2016-07-07T00:00:00","date_gmt":"2016-07-07T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/07\/goldman_sachs_settles_cdo_frau"},"modified":"2022-03-10T16:37:33","modified_gmt":"2022-03-10T22:37:33","slug":"goldman-sachs-settles-cdo-frau","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/","title":{"rendered":"Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund"},"content":{"rendered":"\n<p>Goldman Sachs Group Inc. (GS) and Basis Capital\u2019s Basis Yield Alpha Fund have reached an agreement to settle the $1B collateralized debt obligation fraud lawsuit brought by the Australian hedge fund against the bank several years ago. The Basis Yield Alpha Fund accused Goldman Sachs of making false statements related to its marketing of the Timberwolf, a mortgage-linked investment, and the Point Pleasant collateralized debt obligation (CDO).  (The Timberwolf investment was named in the 2011 U.S. Senate report that found that Goldman misled clients about mortgage-backed securities.)<\/p>\n<p>The Australian hedge fund, in its complaint, claimed that Goldman falsely claimed that the market for CDO investments had become stable even though it knew that was not the case. These particular securities dropped in value within weeks of purchase by the fund. <\/p>\n<p>The  Basis Yield Alpha Fund is convinced that Goldman sold the securities to rid itself of the toxic subprime mortgages while making money by shorting the securities. The fund sought repayment of over $67M it claims was lost by investing in the collateralized debt obligations, as well as $1B in punitive damages. Goldman, which argued that the fund\u2019s losses were caused by the demise of the housing market and not because of any alleged misrepresentations, claimed that the Australian hedge fund filed its CDO fraud lawsuit to try to get the bank to pay these losses. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/\"  title=\"Continue Reading Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs Group Inc. (GS) and Basis Capital\u2019s Basis Yield Alpha Fund have reached an agreement to settle the $1B collateralized debt obligation fraud lawsuit brought by the Australian hedge fund against the bank several years ago. The Basis Yield Alpha Fund accused Goldman Sachs of making false statements related to its marketing of the [&hellip;]<\/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":[3742,3752,3947],"tags":[],"class_list":["post-6008","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-financial-firms","category-goldman-sachs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund &#8212; Investor Lawyers Blog &#8212; July 7, 2016<\/title>\n<meta name=\"description\" content=\"Goldman Sachs Group Inc. (GS) and Basis Capital\u2019s Basis Yield Alpha Fund have reached an agreement to settle the $1B collateralized debt obligation fraud &#8212; July 7, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund &#8212; Investor Lawyers Blog &#8212; July 7, 2016\" \/>\n<meta name=\"twitter:description\" content=\"Goldman Sachs Group Inc. (GS) and Basis Capital\u2019s Basis Yield Alpha Fund have reached an agreement to settle the $1B collateralized debt obligation fraud &#8212; July 7, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund &#8212; Investor Lawyers Blog &#8212; July 7, 2016","description":"Goldman Sachs Group Inc. 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(GS) and Basis Capital\u2019s Basis Yield Alpha Fund have reached an agreement to settle the $1B collateralized debt obligation fraud &#8212; July 7, 2016","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund","datePublished":"2016-07-07T05:00:00+00:00","dateModified":"2022-03-10T22:37:33+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/"},"wordCount":334,"articleSection":["Collateralized Debt Obligations","Financial Firms","Goldman Sachs"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/","url":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-settles-cdo-frau\/","name":"Goldman Sachs Settles CDO Fraud Lawsuit Brought by Basis Yield Alpha Fund &#8212; Investor Lawyers Blog &#8212; July 7, 2016","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2016-07-07T05:00:00+00:00","dateModified":"2022-03-10T22:37:33+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Goldman Sachs Group Inc. 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