March 20, 2017 / 9:34 PM / in 7 months

Goldman not liable for fraud in auction-rate lawsuit - ruling

A federal judge in Manhattan has tossed a lawsuit accusing Goldman Sachs of fraudulently promoting risky auction-rate securities, causing major losses to a nonprofit hospital in New Mexico when the $330 billion market collapsed in 2008.

In a decision on Friday, U.S. District Judge Alison Nathan rejected claims that Goldman Sachs deceptively propped up the market for auction-rate securities by buying them for its own inventory, making it appear as if there were more demand than there actually was.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2nE9S6I

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