Judge Refuses to Dismiss SEC Case Against Goldman's Fabrice Tourre
The lawsuit accused Goldman of creating collateralized debt obligations (CDO) and selling it to German investors without telling them that the hedge fund Paulson & Co helped choose the underlying securities so it could bet against them.
Tourre is the only individual who was sued.
The Supreme Court ruled in Morrison v National Australia Bank that Australian shareholders who bought that bank's stock overseas could not raise securities fraud claims n the U.S. courts.
Tourre has said that the ruling warrants the dismissal of the SEC lawsuit against him. Tourre argued that the case had no merit because the CDOs were not listed on an exchange and the only investor was Germany's IKB Deutsche Industriebank, which invested overseas.