GS Mortgage Securities Corporation Mortgage-Backed Securities Class Action Lawsuit 12/11/2008

If you purchased the listed certificates or offerings, you might have certain options and should contact the Shareholders Foundation, Inc.

Certificates:
Certificates means those Certificates listed (by CUSIP) on Table A to the Plan of Allocation.

Offerings:
GSAA Home Equity Trust 2007-3; GSAA Home Equity Trust 2007-4; GSAA Home Equity Trust 2007-5; GSAA Home Equity Trust 2007-6; GSAA Home Equity Trust 2007-7; GSAA Home Equity Trust 2007-8; GSAA Home Equity Trust 2007-10; GSAMP Trust 2007-HE1; GSAMP Trust 2007-HE2; GSR Mortgage Loan Trust 2007-OA1; GSR Mortgage Loan Trust 2007-OA2; GSR Mortgage Loan Trust 2007-3F; GSR Mortgage Loan Trust 2007-4F; and GSR Mortgage Loan Trust 2007-5F

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
GS Mortgage Securities Corp.
Case Name: 
GS Mortgage Securities Corp. Shareholder Class Action Lawsuit 12/11/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/11/2008
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
02/10/2009
Date Settled: 
12/30/2015
Settlement Amount: 
$272,000,000
Deadline to Participate in Settlement: 
05/13/2016
Summary: 

The settlement includes all persons who prior to December 11, 2008 purchased or otherwise acquired any of the following certificates in the following offerings.

Certificates:
Certificates means those Certificates listed (by CUSIP) on Table A to the Plan of Allocation.

Offerings:
GSAA Home Equity Trust 2007-3; GSAA Home Equity Trust 2007-4; GSAA Home Equity Trust 2007-5; GSAA Home Equity Trust 2007-6; GSAA Home Equity Trust 2007-7; GSAA Home Equity Trust 2007-8; GSAA Home Equity Trust 2007-10; GSAMP Trust 2007-HE1; GSAMP Trust 2007-HE2; GSR Mortgage Loan Trust 2007-OA1; GSR Mortgage Loan Trust 2007-OA2; GSR Mortgage Loan Trust 2007-3F; GSR Mortgage Loan Trust 2007-4F; and GSR Mortgage Loan Trust 2007-5F

May 2, 2016 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

December 30, 2015 - The court preliminarily approved the settlement.

August 13, 2015 - Parties filed a stipulation of settlement.

July 15, 2014 - The court granted in part and denied in part the defendants' motion to dismiss.

June 10, 2014 - The defendants filed a motion to dismiss.

November 5, 2012 - The plaintiff filed a fourth amended complaint.

September 28, 2012 - The U.S. Court of Appeals for the Second Circuit affirmed in part and vacated in part the the district court's dismissal and remanded the case for further proceedings.

July 6, 2011 - The plaintiff filed a notice of appeal.

November 17, 2010 - The court denied the plaintiff's motion for reconsideration.

October 29, 2010 - The plaintiff filed a motion for reconsideration of the October 15, 2010 order on motion to dismiss.

October 15, 2010 - The court granted the defendants' motion to dismiss.

July 21, 2010 - The defendants filed a motion to dismiss.

March 31, 2010 - The plaintiff filed a third amended complaint.

December 11, 2009 - The defendants filed a motion to dismiss.

November 9, 2009 - The plaintiff filed a second amended complaint.

August 19, 2009 - The defendants filed a motion to dismiss.

May 15, 2009 - The plaintiff filed an amended complaint.

February 9, 2009 - Lead plaintiff motions were filed.

December 11, 2008 - An investor in Mortgage-Backed Securities offered by GS Mortgage Securities Corporation filed a lawsuit n the U.S. District Court for the Southern District of New York against GS Mortgage Securities Corporation over alleged violations of Federal Securities Laws pursuant and/or traceable to the false and misleading Registration Statement and Prospectus Supplements issued during 2007 and 2008, including the following Certificates:

Mortgage Pass-Through Certificates, Series 2007-FM2;
Asset-Backed Certificates, Series 2007-7;
Mortgage Pass-Through Certificates, Series 2007-HE1;
Mortgage Pass-Through Certificates, Series 2007-4F;
Asset-Backed Certificates, Series 2007-3;
Asset-Backed Certificates, Series 2007-8;
Asset-Backed Certificates, Series 2007-4;
Mortgage Pass-Through Certificates, Series 2007-HSBC1;
Mortgage Pass-Through Certificates, Series 2007-HE2;
Mortgage Pass-Through Certificates, Series 2007-4;
Mortgage Pass-Through Certificates, Series 2007-3F;
Mortgage Pass-Through Certificates, Series 2007-OA2;
Asset-Backed Certificates, Series 2007-5;
Asset-Backed Certificates, Series 2007-10;
Mortgage Pass-Through Certificates, Series 2007-OA1;
Mortgage Pass-Through Certificates, Series 2007-5F;
Asset-Backed Certificates, Series 2007-6

According to the complaint the plaintiff alleges that GS Mortgage Securities Corporation, certain of its officers and directors and the issuers and underwriters of the Certificates violated the Securities Act of 1933. Specifically the complaint alleges that on January 31, 2007, defendants caused a Registration Statement to be filed with the SEC in connection with and for the purpose of issuing billions of dollars of Certificates. The Certificates were issued pursuant to Prospectus Supplements, each of which was incorporated into the Registration Statement and the Registration Statement included false statements and/or omissions. As a result, the Certificates sold to plaintiff and the Class were secured by assets that had a much greater risk profile than represented in the Registration Statement and defendants were able to obtain superior ratings on the tranches or classes of Certificates, when in fact these tranches or classes were not equivalent to other investments with the same credit ratings, so the lawsuit. But then by early 2008, the truth about the performance of the mortgage loans that secured the Certificates began to be revealed to the public, increasing the risk of the Certificates receiving less absolute cash flow in the future and the likelihood that investors would not receive it on a timely basis and the credit rating agencies also began to put negative watch labels on the Certificate tranches or classes, ultimately downgrading many, so the plaintiff. In addition the stockholder alleges that the Certificates are no longer marketable at prices anywhere near the price paid by plaintiff and the Class and the holders of the Certificates are exposed to much more risk with respect to both the timing and absolute cash flow to be received than the Registration Statement/Prospectus Supplements represented.