NEW YORK: Goldman Sachs Group Inc was sued for fraud by Dutch pension fund ABP over residential mortgage-backed securities that the Wall Street bank sold to the fund.
Goldman facilitated the "systematic abandonment" of underwriting guidelines and appraisal standards to package and sell securities to investors like ABP that were far riskier than represented, according to the lawsuit, which was filed Friday in New York state Supreme Court in Manhattan.
Goldman and its rivals face myriad lawsuits accusing them of misleading investors who suffered losses when the housing market crashed. Like ABP, the investors often claim Goldman placed bets against their securitizations.
The size of the lawsuit brought by ABP, the pension fund for Dutch public employees, was not immediately clear.
Michael Duvally, a spokesman for Goldman Sachs, declined comment.
The case is Stichting Pensioenfonds ABP v. The Goldman Sachs Group, 650264/2012, New York state Supreme Court.
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