Enron law firm sues Goldman Sachs

Financial Crisis Posted on

CNNMoney reports that Robbins Geller Rudman and Dowd, the law firm that won $7.2 billion in a class-action suit against energy trade Enron, has sued Goldman Sachs (GS) for deceiving investors about the bank’s financial conditions.

The complaint asserts that Goldman, not only totally failed to exercise its obligations as a firm to disclose to investors vital information in the sale of Abacus 2007-AC1, a synthetic CDO that hinged on the performance of subprime residential mortgage-backed securities, but also “chose not to issue a Form 8-K alerting investors to this event and later even omitted this information from its Form 10-Qs. As a result, investors were unaware the SEC was even investigating ABACUS 2007-AC1.”

The lawsuit seeks to represent investors who bought shares between Oct. 15, 2009, and April 16 of this year at artificially inflated prices, a time which coincides with Goldman’s hesitation to reveal that it had received a Wells notice from the SEC, indicating the federal regulator intended to enforce charges against the Abacus deal.

The suit names CEO Lloyd Blankfein, CFO David Viniar and President Gary Cohn among the defendants.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.


American Bar Association – Start and Run a Law Firm

NewYorkStateBar.com – Starting a Law Firm

Lawyer Website Designs