Tuesday, 24 May 2016
Last updated 16 hours ago
Jun 7 2011 | 1:30pm ET
A former McKinsey & Co. chief and alleged Raj Rajaratnam tipster has been sued by a Goldman Sachs shareholder.
James Mercer's lawsuit seeks to recover "short-swing" profits Galleon Group founder Rajaratnam made trading Goldman shares. Rajaratnam was convicted last month of insider-trading, including in Goldman shares based on information he allegedly received from Gupta.
Gupta served on Goldman's board of directors. Prosecutors in the Galleon case presented evidence that he passed information about Berkshire Hathaway's planned investment in Goldman.
Gupta is also the subject of a pending Securities and Exchange Commission administrative action.
Mercer's "lawsuit is completely without merit, and we will vigorously defend against it," Gupta's lawyer, Gary Naftalis, said.