Goldman Wins Delay In Replying To SEC Lawsuit

Jun 21 2010 | 12:17pm ET

Goldman Sachs has won another month to craft its reply to—or negotiate a settlement of—the Securities and Exchange Commission fraud lawsuit against it.

The SEC did not oppose the Wall Street giant’s request, which was granted today—when the firm’s reply to the April 16 lawsuit was originally due. The extension also applies to Fabrice Tourre, the Goldman executive also named in the SEC suit.

Goldman now has until July 19 to file its formal reply to the charges.

The SEC has accused Goldman of misleading investors in a collateralized debt obligation it allegedly structured and marketed on behalf of hedge fund Paulson & Co. According to the SEC, Goldman did not tell the other investors about Paulson’s involvement, nor that the hedge fund would be shorting the CDO through credit default swaps it bought from Goldman.

Paulson has not been accused of any wrongdoing.

Goldman is said to be eager to settle the lawsuit, but is keen to avoid a fraud charge. Still, a top Goldman executive said last week that a deal with the SEC is not on the horizon.


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