Goldman, Sachs & Co. : [CDO Offerings]: Hudson Mezzanine Funding 2006-1, Ltd., Hudson Mezzanine Funding 2006-1, Corp., Hudson Mezzanine Funding 2006-2, Ltd., Hudson Mezzanine Funding 2006-2, Corp. Summary: According to a press release dated October 4, 2010, the complaint alleges that the Defendants violated section 10(b) of the Securities Exchange Act of 1934 and New York common law in structuring, offering and selling to plaintiff and other investors the Hudson CDO Securities. More specifically, plaintiff alleges that in a classic case of “heads we win, tails you lose,” the Defendants failed to disclose to investors both that the Hudson CDO Securities were structured by Defendants such that they were doomed to lose value, and that Goldman would profit from its own short positions when the Hudson CDO Securities did lose value. The securities issued by the Hudson 1 CDO reportedly suffered their first ratings downgraded in early September of 2007; by the end of 2007, at least $280 million of the securities were downgraded; and by at least mid-2008, the Hudson 1 CDO’s AAA-rated securities had been downgraded to junk status. In addition, certain principal of the Hudson 1 CDO securities was reportedly paid off in or about April and May of 2009, with investors in several of the tranches losing millions of dollars, as alleged more fully in the complaint.
Similarly, by the end of 2007, at least $144 million of the securities issued by the Hudson 2 CDO had been downgraded. On August 20, 2008, $286 million of the securities issued by the Hudson 2 CDO were further downgraded by Standard & Poor’s.
On December 07, 2010, an Order Consolidating Any Subsequently-Filed Related Cases, Appointing Lead Plaintiff And Approving Lead Plaintiff's Choice Of Counsel was issued by the Court.
On February 4, 2011, an amended complaint for violations of securities laws was filed by the lead plaintiffs against the defendants.
On March 21, 2012, the Court issued an Order granting in part and denying in part defendants' motions to dismiss.
On December 14, 2012, the Plaintiff filed a Notice of Voluntary Dismissal, dismissing without prejudice claims against certain defendants.
SIC Code: 6211
Industry: Investment Services
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