Goldman Sachs Group
Inc lost its bid to dismiss a lawsuit accusing it of defrauding
investors by selling risky debt linked to subprime mortgages that
it planned to bet against.
U.S. District Judge Victor Marrero in Manhattan said the hedge
fund Dodona I LLC may pursue nearly all its claims against Goldman,
including that the bank recklessly or intentionally sold Hudson
Mezzanine Funding collateralized debt obligations to offload
subprime risk on unsuspecting investors.
Lederer, a lawyer representing Dodona, called Marrero's
decision "extremely well-reasoned, measured, and very substantially
supported. We are eager to ultimately try the case on behalf of our
client and other investors in the Hudson CDOs."
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