 Image from a quicklink (Image by Unknown Owner) Details DMCA | A new lawsuit accuses Goldman Sachs of purposely unloading $93 million in mortgage-backed securities it knew to be junk onto a client, then betting against those same securities in the lead-up to the financial crisis.
Basis Yield Alpha Fund, an Australian hedge fund, filed the lawsuit against Goldman Sachs on Thursday, asking for more than $1 billion in damages. The lawsuit alleges that Goldman Sachs overcharged for two sets of mortgage-backed securities that it sold to Basis; lied about the securities' expected performance; did not provide timely, accurate information about the securities' true value; and failed to disclose that the firm was actively betting against the securities at the time of the transaction -- all which the hedge fund says contributed to its collapse. "They were lying to clients in order to get junk off their books," saud Fund's attorney. |
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