Economic Times – 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.
The decision by US district judge Victor Marrero in New York keeps alive a hedge fund’s claims over a $2 billion offering of collateralized debt obligations, amid intense scrutiny over Goldman’s activities before and after the 2008 financial crisis.
