Barbara Ann Radnofsky, the author of the proposed State litigation alleging negligence and fraud against Wall Street firms, analyzed Goldman Sachs's $550 million fraud settlement and statements. "The Goldman announcement of mistake and corrective measures are excellent new evidence of negligence, apart from the fraud we allege," she said. Goldman Sachs settled fraud allegations brought by the Securities and Exchange Commission. By paying over half a billion dollars to settle, Goldman Sachs avoided having to confess fraud. Goldman Sachs made an extraordinary concession that it "made a mistake" by not disclosing that the securities it sold were secretly designed by Paulsen and Co. to fail, not to make money for the innocent purchasers. Goldman Sachs also outlined additional measures and claims it will now take to toughening oversight of mortgage securities, marketing materials and the employees who create or pitch.

Former Governor of Texas Mark White, who served also as Attorney General for the State of Texas, called on the Texas Attorney General to file suit on the strength of the week's developments, explaining: "Radnofsky's proposed State suit versus Goldman Sachs and other Wall Street firms is greatly aided by Goldman's concessions announced today. The State of Texas has suffered as a result of Wall Street negligence and fraud. And the harm to the State we love is physical as well as economic."

White continued, "Ms. Radnofsky's case is a much better case than the Tobacco litigation. Ms. Radnofsky is best known for her decades of work as a top defense lawyer. She understands and can prosecute better than any other lawyer on a major case of this size. Each State should follow suit to recover for the negligence and other misconduct of Wall Street."

Goldman's confession of mistake and changes in oversight of its securities and its employees are welcome new developments in Radnofsky's proposed litigation. A State can sue for negligence as well as fraud damages. Radnofsky: "The evidence of misconduct causing the economic collapse of September 2008 extends far beyond Goldman Sachs." The Wall Street Journal reports on July 16, 2010 that "many of the Goldman practices that were targeted by the Securities and Exchange Commission were used by other big Wall Street firms....some banks and other financial firms lost billions on the high stakes housing wagers, leading to taxpayer-funded bailouts."

In a July 6, 2010 press release, Radnofsky pledged that as Attorney General, she would only use great lawyers willing to handle this case at no fee and the fine lawyers within the Attorney General's office.

For legal briefing on negligence damages collectable by a state or for briefing on how fraud by Wall Street firms sustains State litigation, please request special issue briefs 11 and 17; or for other information contact: Katie Floyd at katie.floyd@radnofsky.com.

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During her 30 year legal career, Barbara Ann Radnofsky, 2010 Democratic nominee for Texas Attorney General, has represented retirees, life-saving doctors, blood banks, children burned by lighters, families of murder victims, unfairly treated businesses: a wide variety of persons entitled to protection. Barbara Ann graduated with honors from the University of Houston and the University of Texas School of Law.

She was honored as the Outstanding Young Lawyer of Texas in 1988 and for the past 17 years she has been listed in "Best Lawyers in America". Prior to 2006, she was a partner at the law firm of Vinson & Elkins in Houston, where she served as head of the Alternate Dispute Resolution Section. She was the first woman at Vinson & Elkins to have children as an associate and later attain partnership. Texas has never had a woman Attorney General.

Media Contact:
Katie Floyd: 713-858-9391 (cell); 713-357-3360(office); katie.floyd@radnofsky.com