Late last year, the 2nd U.S. Circuit Court of Appeals in New York ruled against Goldman Sachs in its attempt to limit those represented in MBS class actions. The Court ruled that a union pension fund appropriately represented all purchasers of MBS securities from various offerings, including securities the union fund did not itself purchase. The offerings were all allegedly backed by the same loans.

The decision was controversial nationwide. It contradicted a decision by an Appeals Court and two district courts. Those courts had held that MBS class actions were limited to purchasers of the exact same certificates or tranches.

Surprisingly just last month, the U.S. Supreme Court refused to consider Goldman Sach’s appeal. Goldman responded, stating the decision allowed the plaintiffs to bring claims regarding securities worth several billion dollars, rather than the $500,000 in securities that the fund directly purchased. In our opinion, this decision rightfully expands those MBS investors represented in MBS class actions.