Plaintiffs Attys Downplay High Court's Goldman MBS Snub
March 19, 2013
Contrary to Goldman Sachs' concern, Joel H. Bernstein says that recent Supreme Court decision will not expose Wall Street banks to greater damages
"The amount of damages would remain the same regardless of whether there was a multitude of individual separate lawsuits by each individual investor, one class action on behalf of all investors, or some combination," said Labaton Sucharow LLP partner Joel H. Bernstein, who leads the firm's residential mortgage-backed securities team.
In fact, Goldman's own position would have thrown the class action mechanism out of whack by requiring all individual investors to file separate suits even if their claims were closely related, Bernstein added.
"This would have imposed tremendous burdens on smaller investors, the courts and ultimately the taxpayers, but would not have added a dime to the ultimate damages caused by the fraud the plaintiffs alleged was committed," he said.