Goldman Sachs Loses Bid to End Prudential Fraud Lawsuit
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Goldman Sachs Group Inc. failed to win dismissal of a lawsuit claiming it engaged in fraud and racketeering in selling $375 million of residential mortgage-backed securities to Prudential Financial Inc.
U.S. District Judge Susan Wigenton in Newark, New Jersey, ruled today that Prudential, the second-largest U.S. life insurer, sufficiently pleaded its claims that Goldman misrepresented its underwriting standards and practices. Goldman will have other opportunities to seek dismissal of the lawsuit.