This is an archived article that was published on sltrib.com in 2016, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Goldman Sachs and an Australian hedge fund agreed to end a $1 billion lawsuit over the sale of mortgage-linked securities, including an investment known as "Timberwolf" that became a symbol of the financial crisis after it was cited in internal e-mails released by U.S. lawmakers.
Terms of the agreement weren't detailed in a June 10 court filing in state court in Manhattan.
A fund controlled by Basis Capital Funds Management sued Goldman Sachs in 2010 for allegedly making false and misleading statements in connection with the sale of Timberwolf and another investment known as "Point Pleasant."
The fund sought more than $67 million it said it lost in the deal and $1 billion in punitive damages.
Timberwolf became notorious after an email by former Goldman Sachs executive Thomas Montag, describing it as "one shi—y deal," was released by U.S. lawmakers investigating the bank in 2010.
Michael Duvally, a spokesman for New York-based Goldman Sachs, and Bruce Grace, a lawyer for Basis Yield Alpha Fund, didn't immediately respond to requests for comment on the settlement.
A federal judge threw out the case in 2010, and the fund then sued Goldman in state court. A state judge denied the bank's bid to dismiss the case in October 2012, a ruling that was upheld by an appeals court in January 2014.