Allstate Sues Goldman Sachs in New York State Court

On August 15, 2011, Allstate Insurance Co. filed suit against Goldman Sachs in the Supreme Court of New York, alleging that Goldman committed common law fraud, fraudulent inducement, and negligent misrepresentation in connection with the sale of $123 million in RMBS purchased by Allstate and underwritten by Goldman over the course of five securitizations. Allstate’s complaint relies on the results of several government investigations into the financial crisis, including the U.S. Senate Permanent Subcommittee on Investigation’s April 2011 report entitled “Wall Street and the Financial Crisis” and the Financial Crisis Inquiry Commission’s January 2011 report. Complaint.