Goldman Agrees to Pay $270M to Resolve $6B RMBS Suit
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Goldman Sachs has tentatively agreed to pay $270M to settle the long-running $6B residential mortgage backed securities suit. The claims were brought by NECA-IBEW Health & Welfare Fund and accused the investment bank of selling $6B in shoddy RMBS. NECA alleged that Goldman fooled investors by giving nearly identical misstatements about each offering’s underlying loans. The pension fund was seeking class certification for individual and institutional investors that invested in one of seven GSAA Home Equity Trust 2007 offerings, Law360 reports. The complaint has gone through several iterations. Previous versions were dismissed but the Second Circuit partially reinstated the proposed class-action in September 2012. [Law360]