Saturday, 18 April 2015
Last updated 35 min ago
Oct 28 2011 | 12:11pm ET
Collapsed Australian hedge fund Basis Capital Management is back—in court.
The firm said today that one of its funds has again sued Goldman Sachs over a pair of collateralized debt obligations, three months after a federal judge dismissed another Basis suit against the bank. Basis claims that Goldman misled it about the quality of the assets in the CDOs, Timberwolf and Point Pleasant. In its previous lawsuit, Basis cited a Goldman executive who called Timberwolf, "one shitty deal."
Basis' losses on the CDOs spelled its end.
"We remain committed to holding Goldman to account," Basis' Stuart Fowler said.
Basis' earlier lawsuit was dismissed due to a recent U.S. Supreme Court decision barring the use of U.S. securities laws by foreign buyers of non-U.S. securities. Goldman says the CDOs were sold in the U.K., while Basis claims it was a New York transaction; U.S. District Judge Barbara Jones in July said that Basis had not offered "sufficient facts that allow the court to draw the reasonable inference that the purchase or sale was made in the United States."
"We believe that we acted appropriately and refute in the strongest possible terms any suggestion that Basis Capital was misled in any way," Goldman said in a statement.
The new suit has been filed in New York state court.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…