Legal Industry News

Goldman Sachs to Pay Record $550M to Settle SEC Suit re Claimed Mortgage-Related Fraud

Source: ABA Journal Top Stories
Accused of misleading investors when it foresaw the mortgage meltdown and offered toxic mortgage-related securities that hedged against it, Goldman Sachs has agreed, without admitting liability, to a record payment of $550 million. The banking titan was sued by the U.S. Securities and Exchange Commission in April. Of the $550 million, a total of $300 million will be paid to the Treasury Department and the result will go to investors, reports the Dealbook blog of the New York Times. The federal district court in Manhattan must still approve the settlement before it is final. Although Goldman Sachs isn’t admitting liability,…
Read the rest of the story…