On July 31, the Public Employees' Retirement System of Mississippi moved for approval of a US$26.6 million settlement of an RMBS class action pending before Judge Baer of the Southern District of New York. Plaintiffs asserted claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 against Goldman Sachs arising out of the purchase of US$693 million in RMBS. The complaint alleged that the offering documents contained inaccuracies and omissions, and that Goldman failed to conduct adequate due diligence. In seeking approval of the settlement, plaintiffs argued that they faced litigation risk due to the limited precedent in RMBS class actions at the summary judgment stage and strong affirmative defenses asserted by the defendants.
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US$693 million RMBS case against Goldman Sachs settled for US$26.6 million
- Orrick Herrington & Sutcliffe LLP
- USA
- August 6 2012
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David Parker
Group Manager, Legal and Business Services
Australian Grand Prix Corporation