An appeals court has allowed a defunct Australian hedge fund, Basis Yield Alpha Fund, to proceed with a $1 billion fraud case against Goldman Sachs & Co. The ruling is a win for the small litigation boutique Lewis Baach, whose founder told us he wants to hold Goldman accountable for pushing toxic collateralized debt obligations on investors.
Affirming a trial judge, the New York Supreme Court Appellate Division, First Department, refused on Thursday to dismiss BYAF’s claims that it was duped into investing in two now-notorious Goldman CDOs, known as Point Pleasant and Timberwolf. Goldman’s lawyers at Boies Schiller & Flexner argued that the hedge fund failed to present evidence of fraud. But the court disagreed, writing that “if plaintiff’s allegations are accepted as true, there is a ‘vast gap’ between the speculative picture Goldman presented to investors and the events Goldman knew had already occurred.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
