Goldman Sachs (GS) Stock Declines on Legal Actions

Shares of Goldman Sachs Group Inc. (GS) closed down -3.14 or -1.86 percent to $165.56 per share on Thursday, after several news items involving a lawsuit from a Singapore investor and disciplinary action in South Korea. In addition, Goldman is set for a venue hearing on roughly 25 lawsuits involving the manipulation of aluminum supplies to drive up prices in violation of U.S. antitrust law.

The latest lawsuit, filed in New York state court by Goldman Singapore client Oei Hong Leong, alleges the broker misled him into making options trades in the Brazilian Real versus the Japanese Yen, causing Oei to incur a $34.3 million loss. Also, in South Korea the Financial Supervisory Service informed the Goldman unit its intent to impose disciplinary action for possibly violating the countryâ s domestic capital market rules.
New York City based Goldman Sachs Group Inc. is a multinational investment banking company specializing in underwriting, mergers and acquisitions, asset management and brokerage services. Founded in 1869, the company offers its financial services primarily to institutions and large individual investors. The anti-trust suit involving roughly 25 cases is having a hearing in Las Vegas to determine the venue for the trial. Goldman along with co-defendants JP Morgan (JPM) are based in New York, with another co-defendant, the London Metals Exchange, based in the UK, the aluminum was warehoused in Detroit and the lawsuits were filed mostly in Detroit, with four in New York and some in Los Angeles, Boston and New Orleans. The lawsuit accuses Goldman and the LME with tying up as much as 1.5 million tons of aluminum and subsequently charging higher than market rates for its storage. One defendant, Superior Extrusion is seeking class action status which would treble the damages under federal antitrust laws. Christopher Lovell, representing Michigan based Superior Extrusion filed the first lawsuit in Detroit. The attorney addressed six members of the federal Judicial Panel on Multidistrict Litigation in federal court in Las Vegas, saying that, â

Published on Dec 6, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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