A federal appeals court in New York on Thursday revived a lawsuit accusing Goldman Sachs Group Inc of misleading investors about the risks associated with 17 mortgage securities offerings.
The 2nd U.S. Circuit Court of Appeals said a lower court judge erred in refusing to let the NECA-IBEW Health & Welfare Fund, which owned some mortgage-backed certificates, raise claims on behalf of purchasers of certificates backed by mortgages originated by the same lenders.
It also said the lower court judge erred in requiring the fund to allege an out-of-pocket loss in attempting to show that an illiquid security had lost value.
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