Regulators filed a lawsuit Tuesday against Goldman Sachs Group Inc., accusing the investment bank of violating federal and state securities laws in the sale of $1.2 billion in mortgage-backed securities.
The lawsuit, filed in U.S. District Court in Los Angeles, seeks damages in excess of $491 million. It is the fourth securities lawsuit to be filed in recent months by the National Credit Union Administration, which has been negotiating for months with a variety of banks that sold mortgages securities to failed credit unions it has taken over.
The lawsuit alleges that the securities sold by Goldman Sachs to two failed corporate credit unions were “destined to perform poorly.”