ABC News:
A New York judge put two shareholder lawsuits against executives and directors of Goldman Sachs Group Inc on hold until progress is made on 16 other lawsuits related to a controversial debt transaction involving the Wall Street bank.
The lawsuits, brought in state Supreme Court by Robert Rosinek and Morton Spiegel, accuse Goldman officials, including Chief Executive Lloyd Blankfein, of breaching their fiduciary duties by letting the bank enter transactions involving risky collateralized debt obligations tied to subprime mortgages.
At the center of the lawsuits is Abacus, a transaction in which the bank sold CDOs without telling investors that hedge fund Paulson & Co helped choose, and then bet against, the underlying securities.
No comments:
Post a Comment