David Wales, who represents the Public Employees’ Retirement System of Mississippi, told U.S. District Judge Harold Baer, in a letter made public on July 17, that both sides had accepted a settlement proposed by a mediator. Details of the agreement were not disclosed.
Mr. Wales said the parties will file papers by July 31 asking Judge Baer to approve the settlement.
The Mississippi retirement fund sued in 2009, claiming New Century Financial Corp., which originated the mortgages underlying the securities, failed to adhere to its underwriting standards and overstated the value of the collateral backing the loans. The fund claimed Goldman Sachs did not conduct proper due diligence when it bought the loans in 2005.
Judge Baer, in February, granted a request by the Mississippi fund to represent a class of more than 150 investors in the offering.
The case is Public Employees Retirement System of Mississippi v. Goldman Sachs Group Inc., 09-cv-01110, U.S. District Court, Southern District of New York (Manhattan).
Categories: Class Actions of Interest