SEC Charges Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages
The SEC recently charged Goldman, Sachs & Co. with deceiving clients by selling them mortgage securities secretly designed by a hedge-fund firm run by John Paulson, who made a killing betting on the housing market’s collapse. The SEC’s complaint alleges that one of Goldman Sachs’ star traders, Fabrice Tourre, was principally responsible for piecing together the bonds and touting them to investors. According to the SEC, Mr. Tourre wrote in an email shortly before the bonds were sold that “the whole building is about to collapse anytime now” and described himself as the “[o]nly potential survivor, the fabulous Fab … standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!” Further, the SEC alleges that Mr. Tourre’s deals were signed off by senior Goldman Sachs executives.
Robbins Geller Rudman & Dowd LLP is the court-appointed lead counsel for lead plaintiff in NECA-IBEW Health & Welfare Fund v. Goldman, Sachs & Co., No. 1:08-cv-10783 (S.D.N.Y.). Robbins Geller Rudman & Dowd LLP is continuing its investigation on behalf of Goldman Sachs investors.
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Robbins Geller Rudman & Dowd LLP, a 180-lawyer firm based in San Diego, California, was recently identified by RiskMetrics as the Top Firm for Total Settlement Value and Number of Settlements in 2009 and also made Law360’s list of top securities firms of 2009 on the strength of its near $1 billion settlement with UnitedHealth Group Inc. over stock options backdating. Lawyers with Robbins Geller Rudman & Dowd LLP achieved the largest securities class action recovery ever in the Enron case as well as the largest opt-out recoveries in WorldCom and AOL Time Warner.
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