Sun, Dec 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund Basis Yield Alpha has 30 days to amend and refile suit against Goldman Sachs

Thursday, July 21, 2011
Opalesque Industry Update – On Thursday, the US District Court in New York issued a decision that determined the Basis Yield Alpha Fund transaction with Goldman (over subprime securities Timberwolf) was not a domestic transaction, however, Judge Barbara Jones ruled that BYAFM could amend their complaint to reflect this decision, and gave the BYAFM team 30 days to refile their complaint.

The Australian hedge fund is suing Goldman Sachs for fraud, in selling $81m of Timberwolf – which the investment bank itself termed internally a “sh*tty deal”.

Judge Jones ruled that the Supreme Court Ruling in Morrison v National Australia Bank, precluded Goldman Sachs from being pursued for a fraud claim in the US for securities purchased on foreign exchanges. Eric Lewis of law firm Baach Robinson & Lewis, lead counsel for BYAFM, said in a statement that, “We are pleased that Judge Jones rejected Goldman’s plea to dismiss the case with finality. We are confident the sale of Timberwolf took place in New York. The U.S. securities law do in fact apply to Goldman Sachs, even when it is selling securities to investors outside of the United States. This is one step on the way to BYAFM being able to bring Goldman to account for its fraudulent sale of the infamous Timberwolf security.”

Commenting about how this turn of events bodes for the financial community, securities lawyer and Forbes Contributor Bill Singer “says the Morrison decision was a major victory for every financial services and institution that engages in securities transactions in the U.S. “It raises the bar of truth for claimants but it also makes it harder for them to even get in the courthouse door”. (Source).

The Timberwolf securities declined more than $50m within a single month during the summer of 2007.

Kirsten Bischoff

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released