Saturday, 27 August 2016
Last updated 14 hours ago
Jun 14 2010 | 11:45am ET
Goldman Sachs is adding to its powerful legal team, hiring law firm Boies Schiller & Flexner to defend it against a lawsuit filed by a collapsed Australian hedge fund.
Boies will handle the $1 billion claim from Basis Capital Management, which has accused the Wall Street giant of misleading it about a collateralized debt obligation called Timberwolf, Bloomberg News reports. Goldman has called the lawsuit, which deals with a different CDO from that at the center of the Securities and Exchange Commission’s lawsuit against the firm, “a misguided attempt by basis… to shift its investment losses to Goldman Sachs.”
Basis, which collapsed in 2007 after losing $78 million on the Timberwolf CDO, filed its suit after settlement talks between it and Goldman broke down.
Boies Schiller is one of the U.S.’s most successful litigation firms, and is perhaps most famous for its role in the 2000 election legal disputes on behalf of former Vice President Al Gore. It has also worked for the U.S. Justice Dept. in its antitrust lawsuit against Microsoft Corp. It is currently representing Barclays in litigation stemming from the Lehman Brothers bankruptcy and on an effort to overturn California’s ban on gay marriage.
The law firm joins a whole host of other prominent firms working for Goldman. Both Sullivan & Cromwell and Skadden Arps Slate Meagher & Flom are involved in its defense against the SEC lawsuit, and it worked with O’Melveny & Myers prior to an April hearing before a U.S. Senate subcommittee.