NEW YORK - Goldman Sachs has disclosed information about a half-dozen lawsuits filed against it by shareholders accusing the big Wall St firm and senior executives of misconduct and abuse in the wake of civil fraud charges brought by the Government over mortgage securities deals.
The detailed disclosures came in
a regulatory filing by the firm with the Securities and Exchange Commission. Goldman, the most powerful firm on Wall St, has been criticised for making less than complete public reporting of legal challenges.
Last year, for example, the firm didn't disclose that it had received a notice from SEC staff that the agency was considering filing charges against it - a disclosure that would have been voluntary under SEC rules but concerned an event that could be considered significant to shareholders.
Goldman's lengthy filing notes that the litigation by shareholders makes claims against the firm and its executives of "breach of fiduciary duty, corporate waste, abuse of control, mismanagement and unjust enrichment".
It also challenges the accuracy and completeness of the firm's past disclosures. The shareholders are seeking damages, restitution and corporate government reforms by the firm.
Lawsuits by shareholders have multiplied and shares of Goldman Sachs Group have plummeted since news of the SEC's civil lawsuit against the firm and a trader, Fabrice Tourre.
That was followed by a Senate hearing last week at which Goldman executives, including chief executive Lloyd Blankfein, were grilled and publicly rebuked by indignant lawmakers.
Goldman and Tourre have denied wrongdoing and said they will contest the allegations in court.
- AP
