Followers | 680 |
Posts | 141228 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Wednesday, December 08, 2021 4:55:57 PM
By: Jonathan Stempel | December 8, 2021
NEW YORK (Reuters) - Goldman Sachs Group Inc (NYSE:GS) must again face a class action by shareholders who said they lost $13 billion because the Wall Street bank hid conflicts of interest when creating risky subprime securities before the 2008 financial crisis, a judge ruled on Wednesday.
U.S. District Judge Paul Crotty in Manhattan rejected Goldman's claim that its general statements about its business, including that client interests "always come first" and "integrity and honesty are at the heart of our business," were too generic to mislead investors and affect its stock price.
Shareholders including the Arkansas Teacher Retirement System accused Goldman of packaging and selling collateralized debt obligations it wanted to fail so favored clients like hedge fund billionaire John Paulson could secretly bet against them.
Goldman declined to comment. Lawyers for the shareholders did not immediately respond to requests for comment.
The case had gone to the U.S. Supreme Court, which in June said lower courts could use expert testimony and "a good dose of common sense" in deciding whether generic statements affected stock prices.
Applying that decision, Crotty said even Goldman's more generic statements could reinforce misconceptions about its practices and that Goldman offered no evidence its stock price would have "held fast" had it disclosed its conflicts.
Noting Goldman's claim that dozens of blue-chip companies make similar statements, Crotty said he was "hard pressed" to understand why such statements would achieve "such ubiquity" if they had no effect on stock prices.
The Goldman defendants "must show, by a preponderance, that the alleged misstatements had no price impact whatsoever," Crotty wrote. "Defendants have not carried this burden."
In 1988, the Supreme Court said investors could rely on a presumption that all public information about a company was reflected in its stock price.
Goldman reached a $550 million settlement in 2010 resolving U.S. Securities and Exchange Commission charges it concealed Paulson's role in creating a CDO, Abacus 2007-AC1, and that he made $1 billion betting against it.
The case is In re Goldman Sachs Group Inc Securities Litigation, U.S. District Court, Southern District of New York, No. 10-03461.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GS News
- Meta Platforms Expands AI Ads, Apple Boosts iPhone Shipments, and More Highlights • IH Market News • 05/08/2024 12:27:48 PM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Perficient Stock Soars 52.9% Post-Acquisition; Luminar Declines 10% Amid Workforce Cutbacks, and Other News • IH Market News • 05/06/2024 12:09:00 PM
- Transcendia Announces Significant New Capital Investment to Support Next Phase of Growth and Value Creation Initiatives • PR Newswire (US) • 05/02/2024 04:00:00 PM
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Tether’s Division Restructure, Aptos-Microsoft DeFi Collaboration, and More Crypto News • IH Market News • 04/18/2024 05:59:13 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Analysts Sound Alarm on Fourth BTC Halving, Kraken Wallet Launch, and More Crypto News • IH Market News • 04/17/2024 05:45:22 PM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Dow Looks To Snap Six-Day Losing Streak As UnitedHealth Surges • IH Market News • 04/16/2024 01:09:47 PM
- U.S. Index Futures Signal Mixed Trading, Oil Prices Dip • IH Market News • 04/16/2024 11:19:33 AM
- U.S. Stocks Extend Sell-Off As Treasury Yields Surge After Retail Sales Data • IH Market News • 04/15/2024 08:38:32 PM
- Goldman Sachs’ Q1 net revenue totals $14.21B • IH Market News • 04/15/2024 06:36:16 PM
- Upbeat Earnings, Retail Sales Data May Generate Buying Interest • IH Market News • 04/15/2024 01:10:16 PM
- U.S. Index Futures Surge after Dow Jones’ Worst Week, Oil Prices Dip • IH Market News • 04/15/2024 11:08:21 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Crypto: Morgan Stanley and UBS Compete for Leadership in Bitcoin ETFs, Risks in Ethena’s USDe Strategy, and More • IH Market News • 04/05/2024 06:15:55 PM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Crypto: Paradigm Seeks Investment for New Web3 Fund, KBW Initiates Cautious Coverage on Robinhood, and Other Updates • IH Market News • 04/03/2024 02:21:12 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM