Dismisses Claims

SDNY Dismisses Claims Against Goldman Sachs

On September 28, 2011, Judge Pauley of the Southern District of New York dismissed a suit brought by Ladesbank Baden-Wuerttemberg against Goldman Sachs & Co. and TCW Asset Management alleging common law fraud, negligent misrepresentation, and unjust enrichment in connection with the sale of $37 million in CDO notes collateralized by RMBS. The Court found that Plaintiff’s allegations failed to satisfy the heightened pleading standard for fraud claims, and that because the securities were sold pursuant to a purchase agreement, recovery under unjust enrichment was precluded. Additionally, the Court found that Plaintiff’s negligent misrepresentation claims failed because information regarding the securities at issue was readily available in public SEC filings. Decision.