Defunct Australian hedge fund Basis Capital filed suit against Goldman Sachs in the New York State Supreme Court, claiming fraudulent misrepresentation in its 2007 sale of two collateralized-debt-obligation securities, according to a copy of the filing dated Oct. 27.
The Wall St Journal reports that Basis originally filed suit against Goldman last year in the U.S. District Court for the Southern District of New York, but its claims were dismissed in July when the judge ruled the sale was a foreign transaction. The federal court, though, allowed the fund to replead facts regarding the location.
Basis, which managed around US$1 billion before its collapse, is seeking US$67 million in compensatory damages and US$1 billion in punitive damages, according to the filing.
"It's one thing to be forced to give someone back their money; it's another to be penalized for conduct that has wider-reaching ramifications," Basis Capital director Stuart Fowler said in an interview Friday….
Find out more at http://online.wsj.com/article/SB10001424052970203554104577003182937869886.html?mod=googlenews_wsj
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