Thursday, 18 December 2014
Last updated 16 hours ago
Jan 27 2014 | 1:05pm ET
Goldman Sachs will have to face all of the investors in a pair of collateralized debt obligations at once, a federal judge has ruled.
U.S. District Judge Victor Marrero in Manhattan last week rejected Goldman's bid to block class-action status for the lawsuit, which is led by hedge fund Dodona I. The judge said that Goldman failed to show that "difference in this proceeding distinguish the proposed class from any other securities class action." In addition, barring a class-action would "risk disparate results" and would be "a particularly inefficient use of judicial resources."
Dodona alleges that Goldman misled investors in the Hudson Mezzanine CDOs. The hedge fund accuses the bank of creating the instruments knowing that the subprime mortgages behind them were in trouble, to reduce its own risk.
Goldman, which has denied any wrongdoing, had complained that "the proposed class is rife with differences, idiosyncracies and conflicts," and that each claim against the bank should "be asserted independently."
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.