The U.S. Supreme Court has refused to consider an appeal from Goldman Sachs in a class action lawsuit over investments in residential mortgage-backed securities, CNBC reported. The decision means that the Manhattan-based banking giant will have to continue to defend against the case.
A group of 17 investors led by NECA-IBEW Health & Welfare Fund, an electrical workers union pension fund, lodged the suit in 2008, claiming Goldman Sachs gave them false and misleading information about guidelines for the originators of the mortgage loans backing the securities, The Real Deal previously reported.
A New York Federal Trial Court dismissed the case in 2010, but the U.S. Court of Appeals for the Second Circuit overturned that ruling, reinstating the case against Goldman Sachs.
The Supreme Court did not explain its decision not to hear the case, CNBC reported.
Goldman Sachs and the NECA-IBEW were not immediately available for comment. [CNBC] —Hayley Kaplan