Firm Defeats Motion to Compel Arbitration in Multi-Million Dollar Securities Fraud Lawsuit

In September 2013, the Firm, as co-counsel, filed a complaint in the United States District Court for the Southern District of New York on behalf of the National Credit Union Administration Board (the “NCUA”), as liquidating agent of Southwest Corporate Federal Credit Union (“Southwest”), against Goldman, Sachs & Co. and GS Mortgage Securities Corp. (together, “Goldman Sachs”). The Complaint alleges securities fraud claims under federal and state law in connection with Goldman’s conduct as underwriter, seller and/or issuer of certain residential mortgage-backed securities (“RMBS”) purchased by Southwest for $40 million. In November 2013, Goldman Sachs filed a motion to compel arbitration. On January 28, 2014, the District Court issued a 21-page opinion denying the motion.

A copy of the Complaint is available here.

A copy of the District Court’s Opinion & Order is available here.