Nov 1 (Reuters) – Goldman Sachs Group Inc (GS.N) stated it had been sued for alleged insider buying and selling associated to the Archegos meltdown earlier this yr, flagging the lawsuits as potential legal risks in a submitting on Monday.
The lawsuits have been filed by shareholders of three firms – Vipshop Holdings Ltd (VIPS.N), GSX Techedu Inc (GOTU.N) and Tencent Music Leisure Group (TME.N) – and accuse the financial institution of promoting shares in these firms based mostly on “material nonpublic information regarding the liquidation of Archegos’ position”, in line with the filing.
Goldman was one among a number of banks that had lent to Archegos Capital Administration, the household workplace run by former Tiger Asia supervisor Invoice Hwang, which defaulted on margin calls earlier this yr, triggering a fireplace sale of shares together with these in ViacomCBS (VIAC.O) and Discovery Inc (DISCA.O).
World banks misplaced over $10 billion when the fund blew up, with Switzerland’s Credit score Suisse (CSGN.S) the toughest hit amongst its lenders.
The three lawsuits have been filed final month in a federal court docket in New York, and search unspecified damages, Goldman stated.
Reporting by Niket Nishant in Bengaluru and Matt Scuffham in New York; Modifying by Sriraj Kalluvila
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