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High Stakes for the SEC, Goldman and Investors

The Commission's action against Goldman Sachs is the most significant case it has brought in years. SEC v. Goldman Sachs & Co. , Case No. 3229 (S.D.N.Y. Filed Apr. 16, 2010). The case pits the once revered securities markets regulator struggling for a come-back against the Wall Street giant...

O.K., So The SEC Sued Goldman Sachs - Now What?

The SEC's blockbuster announcement last Friday of its civil enforcement action against Goldman Sachs and one of its investment bankers rocked the securities markets and made headlines in the financial press around the world. Undoubtedly because of Goldman's prominence and perhaps also because...

This is "God's Work"?

About a year ago, Lloyd Blankfein tried to burnish Goldman Sachs' post-financial crisis image by arguing in an interview with the Times of London that Goldman was performing God's work by bringing buyers and sellers together to do deals and safeguarding the interests of shareholders. Whatever...

Court Rejects Rating Agencies' Argument that Credit Crisis Alone Caused Investor Losses

In a April 26, 2010 opinion ( here ) that could have significant implications for motions to dismiss in the many subprime-related securities actions pending against the rating agencies, Southern District of New York Judge Schira Scheindlin rejected the arguments of Moody's and S&P that the...

Sex and The City, Goldman and SEC Enforcement

Carrie Bradshaw, the central character of HBO's Sex And The City , was a journalist who wrote about relationships. The show typically began with Ms. Bradshaw pondering some aspect of her current or past relationships and then posing a question which became the topic for the episode. Borrowing...

For SEC Enforcement, What Is the Encore?

The commentary, speculation and second guessing about the SEC's settlement in Goldman may be drawing to a close, or at least diminishing. There is no doubt that Goldman is the most significant market crisis case to come from the numerous investigations the Commission has been conducting. Indeed...

The Latest Galleon Case: Illegal Tips from a Goldman Director

On the eve of the criminal insider trading trial of Raja Rajaratnam the SEC unveiled the latest chapter in the investigation into the founder of Galleon Management LLC: he had been illegally tipped by a former Goldman Sachs and current Proctor and Gamble board member. In an Order for Proceedings...

This Week In Securities Litigation (Week ending June 15, 2012)

The jury heard final argument in the high profile insider trading case against former Goldman Sachs director Rajat Gupta this week. In a court room in the Southern District of Texas the high profile action against R. Allen Stanford concluded with his sentencing to 110 years in prison for a $7 billion...

Dismissal Denied in Goldman Sachs CDO Disclosure Securities Suit

In a harsh June 21, 2012 opinion, Southern District of New York Judge Paul A. Crotty rejected the motion to dismiss of Goldman Sachs and three individual defendants in the securities class action lawsuit pertaining to the infamous "built to fail" Abacus CDO transaction and other ill-fated deals...

Lead Plaintiff, Goldman Sachs Agree to Settle Claims in Securities Class Action

NEW YORK - (Mealey's) Lead plaintiffs in a securities class action lawsuit against Goldman Sachs & Co. Inc., certain of its subsidiaries and officers and directors and three ratings agencies have agreed to settle their claims against the defendants, according to a letter sent July 19 to the...

Second Circuit Hands Subprime Mortgage-Backed Securities Plaintiffs Substantial Standing Victory

Many of the toxic mortgage-backed securities that were a key part of the subprime mortgage meltdown were sold in multiple separate offerings based on the same shelf registration statement but separate prospectuses. Each separate offering included multiple securities at varying tranches of seniority and...

Goldman Sachs, Fabulous Fab, and Morrison's Second Prong

In its June 2010 decision in the Morrison v. National Australia Bank [ enhanced version available to Lexis.com subscribers ], the U.S. Supreme Court enunciated a "transactions" test to determine the applicability of the U.S. securities laws. The Court said that the U.S. securities laws apply...

This Week In Securities Litigation (Week ending October 26, 2012)

The focus this week was on white collar criminal securities cases. First, Rajat Gjupta, the former Goldman Sachs director convicted of passing confidential information to former hedge fund mogul Raja Rajartnam was sentenced. Second, Mr. Rajartnam's appeal of his conviction on insider trading and...

eToys and the Rigged IPO Game

Joe Nocera in the Times last Sunday unearthed some Goldman emails about the eToys IPO from the dotcom era. eToys raised $164 million in a 1999 IPO and then subsequently failed. The story is familiar by now. The IPO was underpriced and Goldman spun shares off to preferred clients. After the company...

Former Goldman Sachs Director Raj Rajaratnam Ordered to Pay $13.9M Penalty To Settle SEC Insider Trading Suit

NEW YORK — (Mealey’s) A federal judge in New York on July 17 ordered a former Goldman Sachs Group Inc. director to pay a $13.9 million penalty to settle claims with the Securities and Exchange Commission that he provided inside information to a former hedge fund manager as part of an insider...