The Australian:
TWO Goldman Sachs shareholders have filed separate lawsuits against Goldman chief executive Lloyd C. Blankfein and the company's directors related to the mortgage deal at the centre of a civil fraud suit filed by the US Securities & Exchange Commission last week and other similar transactions.
The lawsuits, filed in New York State Supreme Court in Manhattan, are the first known cases to be filed against Goldman since the securities regulator brought its complaint.
The SEC has alleged Goldman didn't tell investors in a structured financial product tied to subprime mortgages that hedge fund Paulson & Co helped select the underlying portfolio of mortgages and had bet against the performance of the product.
The transaction at issue in the SEC case was in early 2007 and is one of several so-called "Abacus" transactions.
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