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Goldman agrees to settle mortgage debt class action
Legal Information |
2012/07/18 16:13
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Goldman Sachs Group Inc has agreed to settle a class-action lawsuit with investors who claimed losses on $698 million of securities backed by risky mortgage loans issued by defunct subprime lender New Century Financial Corp.
Lawyers for the investors said in a letter filed in U.S. District Court in Manhattan on Tuesday that a proposed settlement had been reached. Terms were not immediately disclosed, though they are expected to be included in court papers filed by July 31.
Goldman is one of many banks accused by U.S. legislators and regulators of fueling the nation's housing and financial crisis by misleading investors about the quality of mortgage debt they sold.
A federal judge in February ordered Goldman to face the class-action lawsuit that accuses it of defrauding investors in GSAMP Trust 2006-S2, a $698 million offering of certificates backed by second-lien home loans.
The loans were made by New Century, a subprime mortgage specialist that went bankrupt in 2007.
The investors, led by the Public Employees' Retirement System of Mississippi, contend the offering documents contained materially untrue statements about the underwriting and appraisal standards used by California-based New Century, the mortgage originator. Goldman securitized and issued the certificates. |
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Japan whistleblower sidelined despite court ruling
Legal World News |
2012/07/11 15:42
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| pre wrap=An employee at Japanese medical equipment maker Olympus said Wednesdaythat his humiliating treatment has not changed despite a Supreme Courtruling that his demotion for whistleblowing was illegal.Masaharu Hamada said he is still isolated in the office and after lastmonth's court judgment is not given any work. His was the firstwhistleblower case to reach Japan's highest court.His lawyer Koichi Kozen said Hamada may have to file another lawsuit,complaining of human rights violations. Japan remains behind Westerncountries in penalizing companies that fail to abide by court rulings,and some fines are so small companies would rather pay up than abide,Kozen said.We would hope the company would respond quickly, but there has beenno response, Kozen said. We want Mr. Hamada to get a new assignment,where he can be happy.Hamada, 51, an Olympus salesman with experience in the United States,first sued in 2008, alleging punishment for relaying a supplier'scomplaint.He is considered a whistleblower in Japan because he raised questionsabout colleagues' professional behavior and was subjected to bizarreand humiliating punishment, such as taking rudimentary tests./pre |
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FBI investigates missing $17M in trust funds
Law Firm News |
2012/07/09 15:31
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The FBI is investigating the apparent theft of $17 million from Northern California trust fund accounts.
The San Jose Mercury News says the money has vanished from the trust funds of dozens of Santa Clara County residents who relied on a money manager to oversee their life savings.
Probate court records show the investigation centers on accounts administered by Christine Backhouse. She handles more than $104 million in assets.
Court records show she doesn't have enough insurance to cover the missing funds.
Backhouse says a boyfriend secretly wired millions of dollars out of the trusts.
The Campbell money manager mostly handled private trusts with no judicial oversight of her fees for service. |
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State argues high court AZ ruling supports GA law
State Law Issues |
2012/07/06 15:42
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The state of Georgia said Friday in a court filing that its law targeting illegal immigration should be upheld in light of the U.S. Supreme Court's ruling last month on a similar law enacted by Arizona.
The high court upheld a section of Arizona's law that requires police to check the immigration status of those they stop for other reasons. It also struck down three key sections that would: require all immigrants to obtain or carry immigration registration papers; make it a state criminal offense for an illegal immigrant to seek work or hold a job; and allow police to arrest suspected illegal immigrants without warrants.
The 11th U.S. Circuit Court of Appeals in March heard arguments in challenges to both Georgia and Alabama's illegal immigration crackdowns, but the three-judge panel said at the time that it would wait to rule until after the Supreme Court had ruled in the Arizona case. Friday is the deadline for lawyers in those cases to submit new briefs based on the Supreme Court ruling. By early afternoon, only Georgia's filing was available in an online court system. |
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