{"id":5355,"date":"2012-08-18T00:00:00","date_gmt":"2012-08-18T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/08\/shareholder_lawsuit_against_go"},"modified":"2022-04-28T15:47:20","modified_gmt":"2022-04-28T20:47:20","slug":"shareholder-lawsuit-against-go","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/shareholder-lawsuit-against-go\/","title":{"rendered":"Shareholder Lawsuit Against Goldman Sachs CEO and Other Financial Firm Executives is Dismissed"},"content":{"rendered":"\n

In the US District Court for the Southern District of New York, the shareholder complaint against a number of Goldman Sachs Group (GS) executives, including CEO Lloyd Blankfein, COO Gary Cohn, CFO David Viniar, and ex-director Rajat Gupta, has been dismissed. The lead plaintiffs of this derivatives lawsuit<\/a> are the pension fund Retirement Relief System of the City of Birmingham, Alabama and Goldman shareholder Michael Brautigam. They believe that the investment bank sponsored $162 billion of residential mortgage-backed securities<\/a> while knowing that the loans backing them were in trouble. They say that Goldman then proceeded to sell $1.1 billion of the securities to Freddie Mac and Fannie May. Their securities complaint also accuses the defendants of getting out of the Troubled Asset Relief Program early so they could get paid more.<\/p>\n

According to Judge William Pauley, the plaintiffs did not demonstrate that \u201cred flags\u201d had existed for bank directors to have been able to detect that there were problems with the \u201ccontrols\u201d of mortgage servicing business or that problematic loans were being packaged with RMBS. He also said that the shareholders did not prove that firm directors conducted themselves in bad faith when they allowed Goldman to pay back the $10 billion it had received from TARP early in 2009, which then got rid of the limits that had been placed on executive compensation. <\/p>\n

Even with this shareholder complaint against Goldman tossed out, however, the investment bank is still dealing with other shareholder lawsuits. For example, they can file securities lawsuits claiming that they suffered financial losses after Goldman hid that there were conflicts of interest in the way several CDO transactions were put together.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

In the US District Court for the Southern District of New York, the shareholder complaint against a number of Goldman Sachs Group (GS) executives, including CEO Lloyd Blankfein, COO Gary Cohn, CFO David Viniar, and ex-director Rajat Gupta, has been dismissed. The lead plaintiffs of this derivatives lawsuit are the pension fund Retirement Relief System […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3947,3757,4007],"tags":[],"class_list":["post-5355","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-goldman-sachs","category-mortgagebacked-securities","category-shareholder-lawsuits"],"yoast_head":"\nShareholder Lawsuit Against Goldman Sachs CEO and Other Financial Firm Executives is Dismissed — Investor Lawyers Blog — August 18, 2012<\/title>\n<meta name=\"description\" content=\"In the US District Court for the Southern District of New York, the shareholder complaint against a number of Goldman Sachs Group (GS) executives, — August 18, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, 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