April 23 (Bloomberg) — Goldman Sachs Group Inc.’s top executives, including Chairman and Chief Executive Officer Lloyd Blankfein, were sued by investors in two lawsuits filed on behalf of the firm over government fraud allegations.
The investors, Morton Spiegel and Robert Rosinek, said in complaints filed yesterday in New York State Supreme Court in Manhattan that Goldman Sachs officers and directors breached their duty to the company by permitting it to enter into a series of collateralized debt obligations tied to subprime mortgages. One of those CDOs is the subject of a lawsuit against the New York-based firm by the U.S. Securities and Exchange Commission.
According to the derivative complaints, Blankfein and the other defendants failed to exercise oversight of the deals, exposing Goldman Sachs to billions of dollars in possible liability and damage to its reputation.
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The cases are Rosinek v. Blankfein et al, New York State Supreme Court, New York County, No. 650318/2010, and Spiegel v. Blankfein et al in the same court, No. 650319/2010.
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MarketWatch (29 April 10)
