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Goldman Sachs (GS) fails to win dismissal of a shareholder lawsuit claiming damages from...

Goldman Sachs (GS) fails to win dismissal of a shareholder lawsuit claiming damages from conflicts of interest related to CDO transactions. Goldman's shares dove 13% shortly after the firm was charged with fraud by the SEC in 2010 (since settled for $550M).
Comments (10)
  • KJP712
    , contributor
    Comments (437) | Send Message
     
    After lawyers get done picking the bones,you will get a check for 99 cents.Sad but true.
    22 Jun 2012, 04:11 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5226) | Send Message
     
    Anyone who subsribes to the WSJ should read the article. Goldman Sachs defended itself on the basis that claims of honesty and integrity in its financial statements were mere "puffery," so that investors had no right to rely on them.

     

    From the judge's decision:

     

    "Goldman's arguments in this respect are Orwellian. Words such as "honesty," "integrity," and "fair dealing" apparently do not mean what they say; they do not set standards; they are mere shibboleths. If Goldman's claim of "honesty" and "integrity" are simple puffery, the world of finance may be in more trouble than we recognize."

     

    This is a new milestone in Wall St. ethics and morality.
    22 Jun 2012, 06:24 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9925) | Send Message
     
    TA,
    Yes, that is pretty shocking. Is it any wonder that investors continue to desert equities and Wall Street more and more?
    22 Jun 2012, 07:00 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5226) | Send Message
     
    It goes way beyond fool me once, fool me twice here.

     

    I'm still sticking around, on the grounds it's the only game in town.

     

    I don't think it will end until integrity issues actually take a major financial institution down.
    22 Jun 2012, 08:01 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1564) | Send Message
     
    Tom, could you post the WSJ link?
    23 Jun 2012, 12:22 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5226) | Send Message
     
    idk,

     

    Here's a link to Reuters, there is no paywall, and the article cites the case:

     

    http://reut.rs/Mrp5v7

     

    A search on Crotty Goldman Sachs puffery will bring it up from multiple sources.
    23 Jun 2012, 01:24 PM Reply Like
  • Boxed Merlot
    , contributor
    Comments (1583) | Send Message
     
    Once standards have been replaced with sliding scales all bets are off. We've placed a high value on pragmatism and it has come full circle when the parsing of words is reduced to the fact that words themselves only have value in their ability to decieve.

     

    Pathetic development imho.
    23 Jun 2012, 12:34 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5226) | Send Message
     
    It all comes down to, what is the meaning of the word "is?"
    23 Jun 2012, 01:26 PM Reply Like
  • bluesmoke
    , contributor
    Comments (781) | Send Message
     
    Could be the first time GS shorts their own stock.
    23 Jun 2012, 03:47 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1564) | Send Message
     
    I heard they shorted their own stock when they got hit the SEC lawsuit a couple years ago and paid $500M+ in fines.
    25 Jun 2012, 12:40 AM Reply Like
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