Allstate Insurance Co. has filed another lawsuit in New YorkState Supreme Court seeking to recover investment losses onresidential mortgage-backed securities.

A lawsuit filed Aug. 15 names Goldman Sachs Group Inc. andalleges that the more than $123 million in securities it boughtfrom Goldman from April 2006 to March 2007 were soldfraudulently.

In fact, according to the complaint, people at Goldman calledthe mortgage-backed securities “junk,” “dogs,” “crap” and “lemons.”The characterizations were recently made public in governmentalinvestigations, Allstate says.

The U.S. Senate Permanent Subcommittee on Investigation said inan April 2011 report that Goldman was “keenly aware of the poorquality of many of the loan pools” and that the bank knew they were“likely to incur abnormally high rates of default,” Allstate saysin the complaint.

The Northbrook, Ill. insurer has filed numerous similar lawsuitsagainst other banks in an effort to get back billions of dollars ininvestments in mortgage-backed securities. Most recently Allstatefiled a suit to try and get back $104 million in mortgage-backedsecurities it purchased from Morgan Stanley and its affiliates.

A suit against J.P. Morgan Chase & Co. is over more than$750 million in mortgage-backed securities purchased. The insurerhas another lawsuit against Bank of America's Countrywide FinancialCorp. seeking damages related to its purchases of more than $700million in mortgage-backed securities from the company.

In each of the lawsuits Allstate seeks damages includingrescission, monetary losses, attorneys' fees, other costs andinterest.