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