NEW YORK ( TheStreet) -- Goldman Sachs ( GS) 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 >To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.