Pension Funds Lead Goldman Sachs Investor Lawsuit

(Reuters) - A Manhattan federal judge on Friday named three pension funds as co-lead plaintiffs in an investor lawsuit against Goldman Sachs Group Inc (GS.N) to recover losses tied to the Wall Street's bank's alleged misleading statements about Abacus, a product linked to subprime mortgages.

U.S. District Judge Paul Crotty designated the Arkansas Teachers Retirement System, the West Virginia Investment Management Board, and the Plumbers and Pipefitters National Pension Group in Alexandria, Virginia to lead six consolidated lawsuits against Goldman and various of its officers and directors.

Crotty said the funds had the largest financial losses connected with the case of any of the proposed plaintiffs. The funds are represented by the law firms Robbins Geller Rudman & Dowd LLP and Labaton Sucharow LLP.

The litigation arose after the U.S. Securities and Exchange Commission last April 16 sued Goldman and Fabrice Tourre, one of its vice presidents, over Abacus, a 2007 collateralized debt obligation transaction.

In its civil complaint, the SEC accused Goldman and Tourre of failing to tell investors that the hedge fund Paulson & Co helped choose bet against securities underlying Abacus.

The investors contended that the charges, Goldman's failure to disclose it had earlier received a "Wells notice" indicating that charges might be brought, and news of a possible U.S. Department of Justice probe caused the bank's shares to fall 21 percent in just over two weeks.

Goldman agreed last July to settle the SEC case for $550 million, without admitting wrongdoing. Tourre, the only individual sued in the case, has also denied wrongdoing, and is still defending against the SEC lawsuit.

Other investor lawsuits over Abacus have been brought against Goldman or company officials in other jurisdictions.

The case is In re: Goldman Sachs Group Inc Securities Litigation, U.S. District Court, Southern District of New York, No. 10-03461.

(Reporting by Jonathan Stempel, editing by Bernard Orr)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[mlaiuppa]

11:30 PM on 03/28/2011

Good.

Pay back the money or jail time.

Ideally, both.

[mgrant33301]

02:26 PM on 03/28/2011

goldman broke the law. blankfein is CEO. he should go to jail. his family should be evicted from all their estates and those properties should be sold on the courhouse steps. and all the money should go to the people who lost.
end of story.

[Fiscalprudence]

07:46 PM on 03/28/2011

What law did they break? I'm not condoning their business model, but what exact law did they break?They have been found guilty of nothing in a court of law. Court of public opinion only.

[cats530]

11:05 AM on 03/29/2011

Securitization fraud? Defrauding investors?

[anonymous67]

01:08 PM on 03/28/2011

America DEMANDS JUSTICE!!!

These CRIMINAL ENTERPRISES have robbed millions of their savings, jobs and homes -- and brought this country to its knees. Those responsible MUST must be fully prosecuted -- and sent to PRISON.

[JeffreyGold]

05:49 AM on 03/28/2011

Shut these goddamn companies down! They should all have lost their charters by now. We should not have to put up with this bullsh!t. Collectively we all lost in this recession, and these sociopathic clowns got bonuses because we bailed them out AND they got to write off their toxic assets (which amounts to another bailout)? @#$% you, Lloyd Blankfein. I'm getting a restraining order against you and the other fruitcakes. You are NOT leaders. You are NOT businessmen. You are NOT pillars of the community. You are common thieves in starched shirts and ties hiding it behind that stupid motto, "we're doing this for the stockholders." I hope you and your stockholders perish. Stockholders who make America pay for their sociopathic bets should go down with the executives. In the long run, all Goldman Sachs employees losing their jobs and finding new ones far offsets any bullsh!t argument that we have to prop up the psychopaths in our midst in order "to save jobs." Wake up, you lazy, self-interested Americans!

[AmericanScream]

06:50 AM on 03/28/2011

Yep, state sanctioned thievery.

[spinotter11]

07:19 AM on 03/28/2011

That's how our country works right now. I think we all know that it isn't fair. The question is whether enough people have the resolve to change anything, and then if so, what do do in order to create a more just society. I don't think enough people are unified in their goals to make a bit of difference right now. Maybe if it gets worse.

[blind melon scayf]

03:35 AM on 03/29/2011

Sad but. . .

Most of the people complaining would do the same thing if they were in Blankfein's shoes. Many "oppressed" would happily oppress if they were in a position to do so and they wouldn't think twice because hey. . . they aren't doing anything illegal. . .

Don't misunderstand, I think these clowns should absolutely be held responsible and I think that we as a nation need to think long and hard about what kind of society we want. . . we really have to confront the issue of moral hazard. Do we want a civilized society where people work for the betterment of all or do we want a wild west society where people count on the "freedom" to take advantage of whomever they can if they can get away with it. Thing is, do we as a nation have the ability to actually do this or will the gold rush mentality resume when the next big thing comes along?

[crydespite]

04:55 AM on 03/28/2011

"Goldman agreed last July to settle the SEC case for $550 million, without admitting wrongdoing."

Call me legally challenged, but half a billion is not in some sense an admission of wrongdoing?

[spinotter11]

07:19 AM on 03/28/2011

A mere oversight with no harmful intent whatsoever. And legally that's what happened.

[JeffreyGold]

05:29 AM on 03/29/2011

Attention: All Goldman Sachs shills.

Please report back to HQ for your bonuses and your next assignment. Great job here!

Kindest regards,

Lloyd

[FoxIslander]

04:48 PM on 03/28/2011

...half a billion is chicken scratch to the great blood sucking squid.

[Savage Saint Roger]

01:24 AM on 03/28/2011

Bankers and lawyers do have their special language. "Wall Street's misleading statements"? Goldman and their buddies LIED! And took us all with them after at least15 years of malicious market manipulation. But, they are too big to fail and too big to sue. Just ask them! Why have the courts not thrown this out already? We must have some mavericks at work, some lawmen gone rogue.
Louis Cypher, Chairman of the Goldman Sachs board, will not be pleased.

[NessEliot1932]

01:04 AM on 03/28/2011

Since DOJ and H0LDER are doing NOTHING this is the only AVENUE to slightly NAIL THESE FRAUDS AND CROOKS who CHE-AT their own CL1ENTS!

[amanda mariee]

08:54 AM on 03/28/2011

My only hope is that this may finally bring some Indictments for fraud!!
It used to be illegal in this country just ask Keating.

[rafaelbolero]

05:30 AM on 03/29/2011

Holder, who? What is a DOJ?

[leorangerie]

12:14 AM on 03/28/2011

Goldman Sachs has no choice but to settle this. No choice. It will happen soon, and quietly.

[nyjjc]

01:37 AM on 03/28/2011

And with the customary stipulation of no admission of wrongdoing on their part...

[William1950]

11:50 PM on 03/27/2011

This is a vastly under reported story line... We all know the States are broke, because of wall street fraud. We all know a great many States are going after their retirees and pensioners, because they are broke.. What is not said is that the reason for one is the same reason for the other.. Or the cause to be more clear. Wall street collusion caused economies across the globe to fail.. they knowingly sold worthless products and pension funds in general had lots of money to scam.. Wall street banks saw deep pockets with lots of pocket change.. they did not care that there were ( are ) millions of individuals depending on secure pension funds for their retirement.. And now the republican message is that a huge "Entitlement society" has been created by giving people decent wages and retirements.. by giving people health benefits.. Giving is the word they use.. For Free is a term they use.. Lazy Entitled is a term they use.. I don't see their lexicon including the terms: Stealing, Fraudulent, Thieves, or Jail...
The Republicans are in the process of a massive public con, selling the message that there is a massive underclass that is bleeding the treasury of dollars for nothing.. A massive underclass of poor drug addicted lazy people having babies on the dole.. The Republicans are selling the message that We The People are ignorant..

[spinotter11]

07:23 AM on 03/28/2011

The people on top always get to frame the situation in language of their choice. Sad, isn't it?

[nkurland]

10:02 PM on 03/27/2011

How many more guilty verdicts can possibly be issued before the Justice Department prosecutes based on existing fraud laws?

[SamEasy]

10:45 PM on 03/27/2011

How can we expect the JD to do the job when it is an integral part of the systematic corruption that is desacrating American society. And the rest of the plantet, for that matter, since they promoted the fraud all over the planet.

[spinotter11]

07:23 AM on 03/28/2011

F+F. Just for the future, it's desecrating.

[FeelinPalestinian]

08:43 PM on 03/27/2011

get them $hylox

[leorangerie]

12:15 AM on 03/28/2011

Anti-semitism isn't funny.

[FeelinPalestinian]

01:40 AM on 03/28/2011

neither are banksters

[fedupwrep]

08:39 PM on 03/27/2011

This is what taxpaying Americans should demand............

http://www.guardian.co.uk/business/2011/mar/27/dutch-bankers-bonuses-axed-by-people-power

[cats530]

11:10 AM on 03/29/2011

Iceland's ideas sound good too.

[arlandbaee]

07:08 PM on 03/27/2011

This is one of the main reasons why Republicans want to kill pensions. The ability to fight against the big guys. This will disappear if they succeed at destroying pension funds.

UGGGH

[nopilikia]

08:11 PM on 03/27/2011

Bigger reason is they want to kill unions off......did it to private sector unions....now going after public sector unions......after they gut their pension funds......then claim can't afford to pay what is due to retirees.

[Amy Fleischer]

11:11 PM on 03/27/2011

I will personally lead the revolt.

[ranchero42]

06:35 PM on 03/27/2011

Can't help but feel this thread is being spammed by somebody's paid lackey.

Good thing nothing needs to be done about it until it actually becomes a problem even mods recognize.

[epochme]

05:52 PM on 03/27/2011

not to worry... the dog and pony show is lining up... and we will have no choice but to re-elect the One... who is just barely... better than Bush

[ConsensusReality]

09:02 PM on 03/27/2011

Get real:

http://whatthefuckhasobamadonesofar.com/