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NEW YORK — Robbins Geller Rudman & Dowd LLP on April 26 announced that a class action has been commenced in the U.S. District Court for the Southern District of New York on behalf of purchasers of the common stock of Goldman Sachs Group Inc. between Oct. 15, 2009, and the time it was publicly revealed on April 16, 2010, that the Securities and Exchange Commission (SEC) had sued Goldman in connection with its alleged misconduct relating to the formation and sale of ABACUS 2007-AC1, seeking to pursue remedies under the Securities Exchange Act of 1934.
The complaint charges Goldman and certain of its officers and executives with violations of the Exchange Act. Goldman is a financial holding company that provides global banking, securities and investment management services in the United States and internationally.
The complaint alleges that, throughout the class period, defendants failed to disclose material adverse facts about the company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: the company had, in violation of applicable law, not fully disclosed the facts and circumstances concerning the formation and sale of the ABACUS 2007-AC1 deal to investors such that it had engaged in misleading conduct; the company had, in fact, bet against its clients and constructed collateralized debt obligations that were likely, if not designed, to fail; and the company had received a Wells Notice from the SEC about the ABACUS transaction but failed to inform shareholders of this fact.
After the market opened on April 16, 2010, it was revealed that Goldman’s U.S. broker-dealer, GS&C, had been sued by the SEC “for making materially misleading statements and omissions in connection” with ABACUS 2007-AC1. As news of Goldman’s misconduct reached the market, Goldman stock immediately plummeted $24.05, declining from $184.27 per share on April 15, 2010, to close at $160.70 per share on April 16, 2010. Plaintiff seeks to recover damages on behalf of all purchasers of the common stock of Goldman during the class period. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Anyone who wants to serve as lead plaintiff must move the court no later than 60 days from April 26. Member of the proposed class can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/goldmansachs/.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States. For more information, visit http://www.rgrdlaw.com.