It seems as if you cannot have a week pass without a mortgage banking-related lawsuit, and a federal appeals court is keeping the litigation parade on track by reviving a lawsuit brought by investors against Goldman Sachs Group Inc.
According to a Reuters report, the Second U.S. Circuit Court of Appeals in New York has given the green light for NECA-IBEW Health & Welfare Fund to pursue a lawsuit against Goldman Sachs, which has been accused of misleading investors on the quality of some of its mortgage-backed certificates. The new decision reverses earlier rulings by U.S. District Judge Miriam Goldman Cedarbaum in Manhattan, and it also reinstates claims relating to the quality of underwriting on seven of Goldman Sachs' securities offerings in 2007.
A Goldman Sachs spokesperson declined to comment on the court's ruling.
