Goldman Sachs Seeks New Review of CDO Class Certification

Goldman Sachs Group Inc. asked the Second Circuit to rehear a decision affirming class certification for investors who accused it of misleading them about conflicts of interests surrounding certain collateralized debt obligation transactions.

The investment bank lost its bid to undo class certification in April after the U.S. Court of Appeals for the Second Circuit held the investors had successfully invoked a presumption that they’d relied on public misstatements to an efficient market.

The appellate court ought to rehear the case, either as a panel or en banc, because the panel majority’s decision makes the reliance presumption impossible to rebut ...