ABP, Europe's biggest pension fund, has settled a 2011 lawsuit with Goldman Sachs over residential mortgage-backed securities – the fourth of eight sub-prime related cases being pursued by the €292bn investment giant.

ABP had accused Goldman Sachs of "material misrepresentations and omissions" and claimed that "based on these ... ABP purchased securities that were far riskier than represented, backed by mortgage loans worth significantly less than represented, that had been made to borrowers who were much less creditworthy than had been represented."