Goldman, CEO hit with investor lawsuit

[Klukie]

Source: Reuters

(Reuters) - Goldman Sachs Group Inc and Chief Executive Lloyd Blankfein were hit with a shareholder lawsuit claiming they hid key details about a risky transaction that resulted in civil fraud charges and a plummet in its stock price.

Monday's lawsuit filed in Manhattan federal court accused Goldman of making materially false and misleading statements about an Abacus collateralized debt obligation tied to subprime mortgages that regulators say it created and marketed though it was designed to lose money.

The complaint also alleged Goldman concealed its receipt of a Wells notice last July from the U.S. Securities and Exchange Commission, indicating potential civil charges over Abacus.


Read more: http://www.reuters.com/article/idUSTRE63P3XP20100426

[jaxx]

1. It looks like the ball is rolling.

Good!

[Beetwasher]

2. I Have A Feeling That DOJ Has Also Been Quietly Looking Into This

Just a feeling that we may see some criminal indictments.

[girl gone mad]

9. I would be shocked, considering the admin's many ties to Goldman. n/t

[Beetwasher]

12. Who Care's What You Think?

:shrug:

[Lost4words]

13. I do, why dont you wash some beets!

[Beetwasher]

14. Well, Then You Guys Should Hold A Wine Fest

And have some fun!

[Lost4words]

15. back at ya!

:toast:

[Beetwasher]

16. What Is This, Tennis?

How profound. You must have blown a gasket thinking of that one.

[Lost4words]

17. you know I was being nice or friendly. but you cant seem to let go.

you need a good bong hit

[Beetwasher]

19. I'm Asshole, What Do You Expect?

Mess with the beet, you get washed.

[Lost4words]

18. Me too GGM! With Bush the NRA used to say we have an office in the WH.

[Joe Chi Minh]

3. Looks like God, as Blankfein's boss, is going to get in real trouble.

[Angry Dragon]

4. He did say he was doing god's work

Maybe god was not pleased

[Klukie]

5. This is great

From the article......


The complaint also alleged Goldman concealed its receipt of a Wells notice last July from the U.S. Securities and Exchange Commission, indicating potential civil charges over Abacus.

According to the complaint, Goldman's actions caused its shares to trade at inflated levels. The shares fell 12.8 percent on April 16, wiping out more than $12 billion of value, after the SEC filed a civil fraud lawsuit against Goldman.

[florida08]

6. Excellent

Have been wondering where the shareholders were..apparently they believe GS is in big trouble

[JackRiddler]

10. This isn't the shareholders, it's a class action...

Some shareholders are no doubt involved as plaintiffs but the class action is filed by a law firm on behalf of the class, all of whom get a piece of whatever deal happens, if it succeeds.

More likely the big shareholders in GS don't like this, as it may push the price lower (or, we can only hope, cause the beast to die!).

Lead plaintiffs will have had to sell their stock to cement their losses and make their case credible.

[florida08]

11. ahhh

thanks for that clear explanation.

[proudohioan]

7. Oh yeah!!!!!

:thumbsup:

[Flaneur]

8. Time for the corporate death penalty.