A federal appeals court in New York has revived a lawsuit accusing Goldman Sachs Group Inc. of misleading investors about the risks associated with mortgage securities offerings, Reuters reported yesterday. The U.S. Court of Appeals for the Second Circuit said that lead plaintiff NECA-IBEW Health & Welfare Fund, which owned some mortgage-backed certificates underwritten by Goldman, may pursue claims on behalf of a class of investors in certificates backed by mortgages originated by the same lenders. The court also said the fund need not allege an out-of-pocket loss to pursue a claim that an illiquid security had lost value.
