Goldman Sachs’s CEO and other officers are accused in a pair of shareholder lawsuits of lax oversight in deals involving risky mortgage-backed securities that later went bad, AP reports.

The lawsuits filed April 22 in New York State Supreme Court name Lloyd Blankfein and the firm’s entire board of directors as defendants. The suits follow civil fraud charges filed last week by the Securities and Exchange Commission over the same investments.

The bank told the SEC May 10 that it expects more litigation over its collateralized debt obligations. The two parties also are said to be in preliminary settlement talks.

The SEC says Goldman committed fraud by failing to disclose important information about the securities that might have scared off investors.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.