GoldmanSachs666 Message Board

According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Saturday, October 6, 2012

Appeals Ruling Affects Suits Against Goldman Sachs

The Second Circuit Court of Appeals ruling has upheld claims against Goldman Sachs which may increase exposure of Goldman and other banks to further litigation by investors on misrepresentation of MBS.  According to a Bloomberg interview, the decision is a setback to the banks and can be described as "death by a thousand cuts."  It would have been more like a quick execution if the Department of Justice had decided to both investigate and prosecute MBS fraud by the banks.

2nd Circuit remakes MBS class action rules in Goldman ruling
By Alison Frankal - Thomas Reuters News & Insight
. . . . So how significant is the 2nd Circuit's expansion of MBS standing? That's not entirely clear. As I've previously written, we're already in the late stages of MBS class action litigation, and the ruling certainly isn't going to make a difference in the half-dozen settled cases. But there are at least another half-dozen MBS class actions still in the works. Standing has already been litigated in many of them, but plaintiffs with the stomach for more litigation can presumably move to add claims based on the 2nd Circuit's holding. If those motions are granted, the class will undoubtedly face additional litigation over discovery related to the additional trusts and, eventually, over class certification.

Nevertheless, Darren Robbins of Robbins Geller and Steven Toll of Cohen Milstein Sellers & Toll both told me the 2nd Circuit decision is great news for MBS class action plaintiffs. "We hope the certification rulings in the future will follow the scope of the 2nd Circuit's ruling," Toll said in an email. Robbins said there are still billions of dollars at stake in pending MBS class actions in which this ruling may apply. "Just in this case, the decision makes a difference of millions of dollars," Robbins said. He also noted that the 2nd Circuit's holding that MBS investors need not show an out-of-pocket loss to establish damages will help individual plaintiffs in MBS cases.

Read the article here


Post a Comment