Tuesday, 13 October 2015
Last updated 10 hours ago
Aug 26 2010 | 12:51pm ET
Collapsed Australian hedge fund Basis Capital has said that if Goldman Sachs’ bid to dismiss its $1 billion lawsuit is successful, it would render U.S. securities laws useless.
Basis, which accuses Goldman of misleading investors in a collateralized debt obligation that one of its own executives described as a “shitty deal,” urged U.S. District Judge Barbara Jones to reject Goldman’s dismissal bid, calling it an “improper distraction.” Goldman has argued that a recent U.S. Supreme Court decision that forbids federal securities fraud lawsuits filed by foreign buyers of foreign securities traded abroad bars Basis’ suit.
“Goldman’s thesis, if adopted, would render the U.S. securities laws a nullity any time a U.S. seller engages in fraud in effecting the sale of a security to a foreign purchaser,” Basis said in its response to Goldman this week. In any case, the hedge fund wrote, the $78 million deal “was a New York sales transaction from start to finish.”
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…