A new lawsuit was reportedly filed by Liberty Mutual, Safeco, and Peerless Insurance Companies vs. Goldman Sachs.
These Insurance Companies-Plaintiffs are apparently suing Goldman as investors. Their lawsuit does not seem to have much if anything to do with the fact that they are Insurance Companies. See Don Jeffrey, "Liberty Mutual, Safeco Sue Goldman Alleging Securities Fraud" (Bloomberg.com, Thursday, July 7, 2011).
The basis of their lawsuit is reportedly that Goldman was "making misleading statements and omissions'" about a Federal Home Loan Mortgage Corporation a/k/a "Freddie Mac" "preferred-stock offering". Allegedly, the shares "were backed by 'billions of dollars in subprime residential mortgages,' the suit claimed." Jeffrey/Bloomberg, supra.
The lawsuit seems to be accessible on Pacer. It is identified in the linked report as Case No. 11-11194 in the United States District Court for the District of Massachusetts. Your comments are invited. I too plan to take a look at the complaint to see if it alleges more than what has been popularly reported about this interesting lawsuit.
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