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Goldman agrees to settle mortgage debt class action
Court Issues | 2012/07/20 22:39
Goldman Sachs Group Inc has agreed to settle a class-action lawsuit with investors who claimed losses on $698 million of securities backed by risky mortgage loans issued by defunct subprime lender New Century Financial Corp.

Lawyers for the investors said in a letter filed in U.S. District Court in Manhattan on Tuesday that a proposed settlement had been reached. Terms were not immediately disclosed, though they are expected to be included in court papers filed by July 31.

Goldman is one of many banks accused by U.S. legislators and regulators of fueling the nation's housing and financial crisis by misleading investors about the quality of mortgage debt they sold.

A federal judge in February ordered Goldman to face the class-action lawsuit that accuses it of defrauding investors in GSAMP Trust 2006-S2, a $698 million offering of certificates backed by second-lien home loans.

The loans were made by New Century, a subprime mortgage specialist that went bankrupt in 2007.

The investors, led by the Public Employees' Retirement System of Mississippi, contend the offering documents contained materially untrue statements about the underwriting and appraisal standards used by California-based New Century, the mortgage originator. Goldman securitized and issued the certificates.


Class-action lawsuit filed against Mountain State
Legal Opinions | 2012/07/18 22:39
Three students are suing Mountain State University, former President Charles Polk and the Board of Trustees over the school's revoked accreditation, saying it renders their degrees worthless.

Dale Burger and his two children, Amanda and Jeff Burger, are seeking class-action status for their case, filed late Wednesday in Kanawha County Circuit Court.

Some 3,000 students were enrolled as of April, the lawsuit says. But the plaintiffs contend that the class should cover anyone who enrolled since July 10, 2008. That's when the school first learned it might be in trouble.

The lawsuit says Mountain State told students it was in sound shape when it knew otherwise.

A spokesman declined comment on the lawsuit Thursday.

The private Beckley-based school has campuses in West Virginia, Florida, North Carolina and Pennsylvania.

Mountain State is appealing the Higher Learning Commission's decision to withdraw general accreditation.


Pa. high court denies Orie Melvin request
Court Watch | 2012/07/18 22:36
A Pennsylvania state Supreme Court justice who is fighting political corruption charges has lost a request for her fellow justices to intervene in her criminal court case and require that an out-of-county judge preside over it.

The state Supreme Court issued the one-page order denying the request from suspended Justice Joan Orie Melvin on Tuesday. Melvin had sought to keep Allegheny County judges from hearing her case, complaining that one Allegheny County judge is married to a key prosecution witness, Lisa Sasinoski.

Melvin also had objected to a local district judge presiding over her preliminary hearing, saying the case may be too complex. Melvin asked her colleagues on the state Supreme Court to intervene after an Allegheny County judge denied her initial request.


Wis. town barred from beefing up farm water rules
Legal Network | 2012/07/11 22:26
The Wisconsin Supreme Court ruled Wednesday that a rural town lacksthe authority to impose tougher water-quality standards on a livestockfarm than the state requires.Magnolia, a community about 30 miles south of Madison, granted LarsonAcres Inc. a permit in 2007 when it wanted to expand, but included anumber of conditions because residents blamed it for polluting theirwater supply. The farm initially had 1,000 cows and now has about2,900.Among the conditions, the farm had to allow the town to conductmonthly water quality tests on its land, and it had to follow certaincrop-rotation strategies to reduce nitrate buildup.The farm sued, arguing that pollution-control measures are laid out bythe state and can't be modified by individual towns.The state Supreme Court agreed, ruling that the town exceeded itsauthority by imposing additional measures.The case has been watched by rural Midwest communities struggling todeal with the expansion of so-called factory farms. States throughoutthe farm belt have seen big farms get bigger as the agricultureindustry continues to consolidate.Similar cases have been filed in six other Midwestern states, butWisconsin's is believed to be the first to reach a state supremecourt.


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