Allstate Corp. is suing Goldman Sachs Group Inc., saying more than $122 million in mortgage-backed securities the insurance company bought beginning in 2006 were fraudulent.
Allstate said in a statement that it filed the lawsuit in New York state court against Goldman Sachs and certain affiliates. The complaint alleges violations of state laws involving residential mortgage-backed securities.
Allstate claims Goldman Sachs provided documents about the investments that “contained untrue statements and omitted material facts.” The complaint seeks unspecified damages.
Goldman Sachs spokesman Michael DuVally declined to comment on the lawsuit.
Allstate says it purchased more than $122 million in mortgage-backed securities from Goldman Sachs and affiliates in 2006 and 2007. The value of those securities plunged as the housing market bubble burst.
Topics Lawsuits
Was this article valuable?
Here are more articles you may enjoy.
Illinois Night Club to Pay $200K in Sex and Race Discrimination Case 
NY Lawmakers Agree to Governor’s Auto Insurance Reforms in New Budget 
Florida’s Property Tax Plan Risks Charging Fees for ‘Everything’ 
Roof Costs Soar Even as Claims Decline: Verisk 
