Goldman Investor Suit Over CDO Conflict Downgraded by Court (1)

Goldman Sachs Group Inc. won a federal appeals court ruling downgrading a long-running shareholder suit over an alleged conflict of interest in the marketing of a collateralized debt obligation that collapsed during the subprime crisis.

The US Court of Appeals in Manhattan on Thursday decertified the class in the case, reversing a lower court ruling that had allowed it to proceed as a class action. The ruling limits the suit to the plaintiffs directly involved in the case, led by Arkansas and West Virginia pension funds, rather than potentially applying to all shareholders in Goldman at the time.

Lawyers for ...