U.S. Supreme Court tosses class action ruling against Goldman Sachs

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The plaintiffs accused the company of unlawfully hiding conflicts of interest when creating risky subprime securities.

In directing the 2nd Circuit to reconsider the matter, the justices said the lower court had failed to properly assess whether the bank's statements that the investors had called misleading were

too generic to have affected its stock price. The ruling gives Goldman another chance to avoid the class action in which the plaintiffs said they lost more than $13 billion due to the bank's conduct.

 

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