Goldman Exec. Seeks CDO Lawsuit Dismissal

Dec 15 2010 | 1:42am ET

The Goldman Sachs executive accused of misleading investors in the collateralized debt obligation case that cost the firm a $550 million settlement has renewed his bid to have the lawsuit against him dismissed.

Fabrice Tourre, the only individual charged in the case, asked a judge in New York to toss the Securities and Exchange Commission's amended lawsuit against him. Tourre's lawyers have challenged the suit, saying he can't be sued in the U.S. because the deal in question, ABACUS-2007-AC1, was not a U.S. securities transaction.

In his latest filing, Tourre says the new SEC suit does not "remedy the fatal defects in the original complaint.

"The SEC adds an allegation that a closing for ABACUS-2007-AC1 took place in New York on April 26, 2007," Tourre's lawyers wrote in the filing. "As to the closing, the SEC pleads no facts supporting a plausible inference that the 'closing' was anything more than a ministerial lawyer-driven documentation exercise."

Tourre, who is on leave from Goldman, was based out of London.

Goldman and Tourre were accused in April of misleading investors in a CDO allegedly structured and marketed on behalf on hedge fund Paulson & Co. Goldman settled the charges in July.


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