To be a police officer or fire fighter in Detroit, you have to be tough. But are they tough enough to stand up to the behemoth that is Goldman Sachs? Following a federal judge’s March 27 ruling, we may now have the court case to find out.
U.S. District Judge Miriam Cedarbaum ruled that a proposed class action lawsuit against Goldman Sachs brought by Detroit’s police and fire department system over mortgage-backed securities may proceed as planned. In the suit, filed in 2010, the plaintiffs accused Goldman Sachs of misrepresenting the standards used to qualify borrowers for mortgage loans, which were later pooled into securities and bought by the fund.