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Castle's lawyers said they were negotiating with the plaintiffs to reach a similar agreement.
It settled claims with the plaintiffs' steering committee for some $1.1 billion in September 2014.
Ms. Norton agreed with the plaintiffs that a court monitor was necessary.
Judge Hamilton, relying on the Supreme Court decision, agreed with the plaintiffs.
In principle, Georgia officials do not seem to disagree with the plaintiffs' complaint.
The 3-judge panel sided with the plaintiffs on virtually all counts.
"Both points I make are valid," he said, but "the money really began with the plaintiffs' lawyers, big time".
But in his opinion, the judge took Mr. Foshee and Goldman Sachs to task, largely agreeing with the plaintiffs' claims.
During the trial, the bank stressed that its contracts with the plaintiffs only obligated it to perform ministerial duties.
The city and state can appeal the ruling, reach a settlement with the plaintiffs or continue to fight the suit.
When the Solomon Amendment case went before the Supreme Court, Kagan sided with the plaintiffs — again, sort of.
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