NEW YORK (Bloomberg) - A judge yesterday in New York signed an order granting Goldman Sachs Group Inc. more time to respond to a April 16 lawsuit accusing the firm of defrauding investors while selling mortgage-linked securities, records say.

US District Judge Barbara Jones signed a request granting Goldman an extension until July 19, according to court records.

The original deadline was June 21, court documents show. The SEC, in the joint filing submitted to the court with Goldman, consented to the firm's extension of time.

The SEC said New York-based Goldman Sachs and one of its employees, Fabrice Tourre, did not disclose to investors the role played by hedge fund Paulson & Co. in devising and betting against the securities.

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 was not forthcoming about the role that a hedge fund, Paulson & Co., played in selecting and betting against the instrument.

Goldman Sachs, the most profitable firm in Wall Street history, has denied the SEC's allegations and said it will fight the case.

Company spokesman Michael DuVally said he could not comment.

According to the complaint, Goldman created and sold collateralised debt obligations linked to sub-prime mortgages in early 2007, as the US housing market faltered, without disclosing that Paulson helped pick the underlying securities and bet against the vehicles.