Goldman Sachs Reaches A Nearly $80 Million Settlement In A Shareholder Derivative Lawsuit
According to a report from Bloomberg Law, the investment banking company Goldman Sachs has agreed to pay nearly $80 million to resolve a shareholder derivative lawsuit. The dispute is related to a bribery scandal centered around the troubled and insolvent strategic management company 1Malaysia Development Berhad (1MDB). Within this article, our Miami shareholder dispute lawyer provides a more comprehensive overview of the shareholder derivative claim.
Background: 1Malaysia Development Berhad Scandal
1Malaysia Development Berhad is a now-insolvent strategic development fund owned largely by the Malaysian government. The company has been under serious scrutiny from regulators—including the United States Department of Justice (DOJ)—for more than five years. Some believe that more than $4 billion was misappropriated or outright stolen from the development fund.
Goldman Sachs Officers and Directors Were Involved in the Scandal
The New York, NY based investment bank Goldman Sachs played a role in the 1Malaysia Development Berhad scandal. According to allegations raised in a shareholder derivative lawsuit, officers and directors at Goldman Sachs exposed the company to significant financial liability through the improper dealing with the 1Malaysia Development Berhad development fund.
Shareholder Derivative Lawsuit Settled for Almost $80 Million
A shareholder derivative claim was initiated against Goldman Sachs. As reported by Bloomberg Law, that shareholder dispute has now been resolved for nearly $80 million in compensation to the affected shareholders. Notably, Goldman Sachs is a publicly traded company. It is listed on the New York Stock Exchange (NYSE). Investors affected by the matter may be entitled to compensation as part of the shareholder derivative settlement.
A Shareholder Derivative Claim Allows Shareholders to Act on Behalf of Company
Shareholder litigation can be split into two broad categories. One type of shareholder lawsuit is a direct action. In effect, the shareholder is filing a claim on behalf of themselves and/or similarly situated shareholders. The other type of shareholder lawsuit is a derivative claim. With a shareholder derivative action, the claim is technically filed on behalf of the company itself.
The case involving Goldman Sachs provides an example of how shareholder derivative lawsuits work in practice. The core allegations is that the company suffered harm due to the improper conduct of officers, directors, or other insiders. The shareholders are adversely affected because they own a stake in the company. A derivative action allows shareholders to file a claim on behalf of the company. It is a potentially powerful civil remedy to corporate decision-makers legally accountable for damages sustained by misconduct.
Consult With Our Florida Shareholder Litigation Attorney Today
At Pike & Lustig, LLP, our Florida shareholder dispute lawyers are skilled, experienced advocates for clients. If you have any specific questions or concerns about shareholder derivative lawsuits, we are available as a legal resource. Call us now to set up your initial meeting with an attorney. Our business law firm provides legal representation in shareholder disputes throughout Southeastern Florida, including in Miami-Dade County, Palm Beach County, and Broward County.