Bloomberg Law
Jan. 16, 2018, 5:09 PM UTC

Goldman Sachs Gets a Pass in Teachers Retirement Class Action

Bloomberg Law - Staff Reports

Goldman Sachs will get another chance to defeat class action certification in a shareholder suit alleging it hid conflicts of interest when creating risky subprime securities before the financial crisis.

The Arkansas Teachers Retirement System and other investors claimed that Goldman Sachs Group Inc. misstated efforts to avoid conflicts of interest in its subprime mortgage-backed collateralized debt obligations. The government’s investigation of the firm’s activities caused the price of their Goldman stock to fall, they said.

The U.S. Court of Appeals for the Second Circuit Jan. 12 reversed a district court decision certifying a class of investor plaintiffs in the ...

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