New York (HedgeCo.net) – Hedge fund Dodona I LLC., has filed a class action suit against Goldman Sachs and seeks damages. The hedge fund is said to have invested four million dollars in securitized mortgage loans (CDO) under the name Hudson Mezzanine, Reuters reports.
The complaint claims that Goldman built the $2 billion synthetic CDO in 2006 and was the sole counterparty, at the time more than 70 percent of Hudson Mezzanine had AAA ratings, but 18 months later it was downgraded to junk status.
A Goldman Sachs spokesman said the complaint was unfounded.
In June, an Australian hedge fund, Basis Yield Alpha Fund, also sued Goldman to recoup the $56 million it lost on the Timberwolf CDO, Reuters said.
Alex Akesson
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