Tuesday, 31 May 2016
Last updated 3 days ago
Aug 19 2010 | 1:35pm ET
Two shareholder lawsuits against Goldman Sachs in New York State court are now officially one.
New York State Supreme Court Justice Richard Lowe combined the two derivative lawsuits against Goldman and some of the firm’s executives, including CEO Lloyd Blankfein. The two Goldman investors accuse the firm of breaching its fiduciary duties over a collateralized debt obligation, ABACUS-AC-1, allegedly structured and marketed on behalf of hedge fund Paulson & Co.
Goldman last month settled Securities and Exchange Commission fraud charges related to the CDO for $550 million, but that hasn’t been the end of its legal troubles. Goldman is currently battling 15 lawsuits in Manhattan federal court and one in Delaware Chancery Court, as well as the two merged in New York state court.
Lowe also agreed to delay the cases to give both sides a chance to work out a settlement and to allow time for the other lawsuits to make progress.