Allstate, the largest publicly traded U.S. home and auto insurer, has filed several similar lawsuits against other lenders, such as Bank of America Corp
Goldman underwrote securities using loans from subprime lenders known for issuing high risk, poor quality mortgages, Allstate said in its complaint, citing an April report by a U.S. Senate subcommittee examining the 2008 financial crisis.
Then, by betting against the securities, Goldman positioned itself to cash in even more when the true nature of the 'junk' was revealed, Allstate added.
Allstate filed its complaint with the New York State Supreme Court in Manhattan. Goldman spokesman Michael Duvally declined to comment.
The case is Allstate Insurance Co et al v. Goldman Sachs & Co et al, New York State Supreme Court, New York County, No. 652273/2011.
(Reporting by Jonathan Stempel, editing by Bernard Orr)