US - Goldman Sachs has released details of five lawsuits and an amended suit brought by a US pension fund that were filed after the bank was slapped with a civil suit by the Securities and Exchange Commission (SEC) last month.
Earlier this week, the bank said in an SEC statement that various suits had been launched "generally alleging claims for breach of fiduciary duty, corporate waste, abuse of control, mismanagement and unjust enrichment in connection with collateralized debt obligation offerings made between 2004 and 2007, and challenging the accuracy and completeness of GS Inc.'s disclosure".
Meanwhile, the Southeastern Pennsylvania Transportation Authority and International Brotherhood of Electrical Workers Local 98 Pension Fund amended a previous complaint relating to Goldman's 2009 bonuses to include similar allegations.
The firm also said it received a demand letter from the Louisiana Municipal Police Employees Retirement System asking the board to investigate "alleged misconduct" regarding the same collateralized debt obligation that is at the heart of the SEC's civil suit.
On April 16, the SEC claimed Goldman misled investors in Abacus, a CDO product linked to the subprime market. "Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO," the SEC said at the time.
Goldman said it expects "additional putative shareholder derivative actions and other litigation may be filed, and regulatory and other investigations and actions commenced, with respect to offerings of collateralized debt obligations".
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