Goldman Sachs Group was given more time to respond to an April 16 lawsuit accusing the firm of defrauding investors while selling mortgage-linked securities, court records showed.
U.S. District Court Judge Barbara Jones in New York signed a request granting Goldman Sachs an extension until July 19, according to court records. The original deadline was Monday.
The SEC, in the joint filing submitted to the court with Goldman, consented to the firm's extension of time.
The lawsuit claims Goldman Sachs and one of its employees, Fabrice Tourre, didn't disclose to investors the role played by hedge fund Paulson & Co. in devising and betting against the securities. Mr. Tourre also has until July 19 to respond, according to court documents signed by Lorin Reisner, the SEC's deputy director of enforcement, and Richard Klapper, a lawyer for Goldman Sachs.
The SEC alleged the firm wasn't forthcoming about the role that Paulson & Co. played in selecting and betting against the instrument.
Goldman Sachs has denied the SEC's allegations and said it will fight the case. Company spokesman Michael DuVally said he couldn't comment.
According to the complaint, Goldman created and sold collateralized debt obligations linked to subprime mortgages in early 2007, as the U.S. housing market faltered, without disclosing that Paulson helped pick the underlying securities and bet against the vehicles.