NEW YORK ( TheStreet) -- Goldman Sachs (GS - Get Report) is being sued by the National Credit Union Administration for alleged violation of federal and state securities laws in the sale of $1.2 billion in mortgage-backed securities, Bloomberg reported Tuesday.
The lawsuit alleges that the securities sold to two failed corporate credit unions were designed to perform poorly. The NCUA is seeking $491 million in damages from Goldman Sachs, according to the report.
Shares of Goldman were down 3.2% at $113.90.
Goldman Sachs declined comment.--Written by Shanthi Bharatwaj in New York
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