Bloomberg – Basis Capital, an Australian hedge fund, urged a New York judge to allow its $1 billion lawsuit over the marketing of credit default swaps by Goldman Sachs Group Inc. to proceed, calling Goldman’s request for a dismissal a “distraction.”
The lawsuit by Basis Capital’s Basis Yield Alpha Fund focuses on Goldman Sachs’s sale of the “Timberwolf” collateralized debt obligation. The complaint, filed June 9 in Manhattan federal court, says the fund was forced into insolvency after buying mortgage-linked securities created by Goldman Sachs, in what one of its own executives described internally as a “shi**y deal.”
