A Federal District Court Judge in Manhattan refused to dismiss the investor lawsuit alleging that Goldman Sachs made misleading statements regarding its ethical standards, the New York Times’ Dealbook reported. The alleged misleading statements and disclosures were about conflict of interests between Goldman Sachs and other companies.
The article discussed one such example, a deal called Abacus, where Goldman Sachs was partnered with Paulson & Company, though this was not disclosed to investors. Paulson & Company eventually settled their SEC case by paying a $500 million penalty and admitting to making a mistake with its disclosure.
The next step in the Goldman Sachs case in the Federal Court is the discovery stage. In discovery, corporate documents will be requested, as well as depositions with the three executives also named in this case.
If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.