The U.S. District Court for the Southern District of New York Sept. 28 dismissed a German bank’s New York common law fraud and negligence claims against Goldman Sachs & Co. for allegedly misrepresenting the risks associated with a credit default obligation collateralized by residential mortgage-backed securities (Landesbank Baden Wurttemberg v. Goldman Sachs & Co.).
In a decision by Judge William H. Pauley III, the court acknowledged that some allegations “tend to support an inference” that Goldman may have known of the “toxic mortgages” underlying the instrument. However, “these allegations do not give defendants notice of the particulars: the ...
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