Goldman Sachs Reveals Slew of Shareholder Suits

[kpete]

Source: American Lawyer

Goldman Sachs Reveals Slew of Shareholder Suits

Sue Reisinger

Corporate Counsel

May 05, 2010


General counsel Gregory Palm of Goldman Sachs Group Inc. late Monday made a rare filing with the government, revealing at least six shareholder suits against the company over its dealings in the subprime mortgage market, and one highly critical letter from an institutional shareholder.

The filing made no direct reference to a rumored Justice Department criminal investigation. But it did say the company anticipates that additional shareholder actions "and other litigation may be filed, and regulatory and other investigations and actions commenced, with respect to offerings of collateralized debt obligations."

Palm made the disclosures in an 8-K report (pdf) http://www.sec.gov/Archives/edgar/data/886982/000095012310042391/y84170e8vk.htm to the Securities and Exchange Commission. The filing came after shareholders had questioned Palm in a recent quarterly conference call about why the company hadn't revealed a civil investigation by the SEC over Goldman's role in the CDOs.

Monday's filing said that since the SEC filed suit (pdf) against Goldman on April 15, several putative shareholder derivative actions have been filed in New York Supreme Court and U.S. District Court in Manhattan against the company, its board of directors, and certain officers and employees.

Read more: http://www.law.com/jsp/article.jsp?id=1202457662990

[hobbit709]

1. AWW!! Ain't that just TOO bad!

[laughingliberal]

2. Rec. nt

[Angry Dragon]

3. GOOD!!

I hope there are many more

[Canuckistanian]

4. I guess that answers Rush's question, "Where are all the lawsuits against GS??"

And it's good to see individuals named, too!