This matter is a securities class action brought against
Goldman, Sachs & Co., The Goldman Sachs Group, Inc., Hudson
Mezzanine Funding 2006-1, Ltd., Hudson Mezzanine Funding 2006-1,
Corp., Hudson Mezzanine Funding 2006-2, Ltd., Hudson Mezzanine
Funding 2006-2, Corp., Peter L. Ostrem and Darryl K. Herrick
(collectively, the "Defendants"). The action is captioned
Dodona I, LLC v. Goldman, Sachs & Co., et al., No.
10 Civ. 07497(VM) (S.D.N.Y). A copy of plaintiff's amended
complaint is available here.
The Court appointed Dodona I, LLC as lead plaintiff ("Plaintiff"),
and Berger & Montague, P.C. as lead counsel for the class.
The action was initially filed on September 30, 2010. It
concerns two offerings of collateralized debt obligation ("CDO")
securities sponsored by Goldman Sachs known as the Hudson Mezzanine
Funding 2006-1 and Hudson Mezzanine Funding 2006-2. The amended
complaint alleges that the defendants violated section 10(b) of the
Securities Exchange Act of 1934 and New York law in structuring,
offering and selling to the plaintiff and other investors the
Hudson CDO securities. More specifically, plaintiff alleges that,
in a classic case of "heads we win, tails you lose," the defendants
failed to disclose to investors both that they structured the
Hudson CDOs in late 2006 and early 2007 to decrease Goldman's own
then-existing exposures to subprime mortgage-related financial
instruments, and that Goldman would profit from its own short
positions when those securities lost value. The specific Hudson CDO
securities and their CUSIP numbers at issue are identified in the
Notice of Pendency of Class Action available here.
On March 21, 2012, U.S. District Court Judge Victor Marrero
granted in part and denied in part the defendants' motions to
dismiss. A copy of the ruling is available here.
On January 23, 2014, Judge Marrero granted Plaintiff's motion
for class certification. A copy of the ruling is available here. On June 27, 2014, the United States Court
of Appeals for the Second Circuit denied the defendants' Rule 23(f)
petition for leave to file an immediate appeal of Judge Marrero's
decision granting Plaintiff's motion for class certification. A
copy of the order is available here.
On October 21, 2014, the Court granted Plaintiff's motion for an
order approving the giving of notice to class members. A copy of
the Court-approved Notice of Pendency of Class Action is available
On September 8, 2015, the Court granted Goldman's motion for
summary judgment, and dismissed Plaintiff's claims that survived
the Court's prior ruling on the defendants' motion to
dismiss. A copy of the Order is available here.
On February 11, 2016, the parties entered into a settlement
agreement whereby the case was settled for $27.5 million, subject
to the approval of the Court. On that same date, Plaintiff
sought the Court's preliminary approval of the settlement. A
copy of the preliminary approval brief and accompanying settlement
agreement is available here and here.
On February 16, 2016, the Court granted preliminary approval of
the settlement. A copy of the Court's order is available here.
Beginning on March 1, 2016, the Claims Administrator distributed
a notice ("Notice") of the settlement to class members. The
Notice was accompanied by a Proof of Claim form. The Notice
and Proof of Claim form are available here. The Claims Administrator also
established a website containing additional information about the
case and settlement: www.hefflercases.com/cases/don.
On May 13, 2016, Plaintiff sought final approval of the
settlement and an award of attorney fees. Copies of the filings are
available here (Final Approval Brief), here (Motion for Final Approval), here
(Attorney Fee Brief), here (Motion for Attorneys' Fees), and here
(Declaration in Support of Final Settlement Approval).
On July 1, 2016, the Court held a Final Approval Hearing. The
judge approved the settlement in full. Copies of the relevant
orders are available here (Order and Final Judgement), here (Order Approving Plan of Allocation), and
here (Order Approving Attorney's Fees).
If you have any questions regarding this case, please feel
free to contact:
Lawrence J. Lederer, Esq.
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Telephone: (215) 875-4625 or (800) 424-6690