Saturday 23 September 2017

US Supreme Court denies appeal by Goldman in mortgage case

Greg Stohr

THE US Supreme Court turned away an appeal by Goldman Sachs Group in an investor lawsuit over mortgage-backed securities whose value plummeted during the financial crisis in 2008.

The justices yesterday left intact a federal appeals court ruling that partially backed the NECA-IBEW Health and Welfare Fund, which is pressing the case.

Investors

At issue was whether NECA, which bought certificates from two of 17 disputed Goldman Sachs trusts, had legal "standing" to sue on behalf of investors in the other 15 offerings.

The New York-based 2nd US Circuit Court of Appeals said NECA's claims were similar to those stemming from five other offerings, all of which contained loans made by a Wells Fargo unit and GreenPoint Mortgage Funding.

The appeals court said NECA had standing to press those claims, though not any claims concerning the other 10 trusts.

The standing issue is separate from the question of class action status, which the lower courts haven't yet considered.

Irish Independent

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