Atlanta 5/4/2010 8:42:31 PM
Goldman Sachs Facing Series of Lawsuits Filed by Shareholders
Already facing charges of fraud by the Securities and Exchange Commission investment bank giant Goldman Sachs is now the subject of numerous lawsuits that have been filed by shareholders, accusing the firm of mismanagement.
According to a filing with the SEC the shareholders lawsuits claim a “breach of fiduciary duty, corporate waste, abuse of control, mismanagement and unjust enrichment,” all related to its failure to implement proper risk management procedures tied to mortgage-backed derivatives.
The filing against Goldman Sachs noted “defendants failed to implement controls with respect to the evaluation, approval and management of the structure, risk, marketing and distribution” of those derivatives.
Shareholders also alleged the transactions “were neither approved or reviewed by independent members of the [Goldman] board, but instead were reviewed and approved by long-term members of management whose compensation was directly linked to the approval and completion of the proposed transactions.”
News of the filings comes one month after Goldman was accused of fraud by the SEC, an accusation that cost the investment bank billions in stock market value.
Goldman continues to maintain its innocence in all charges.
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