Goldman Sachs Settles Enron Fraud Lawsuit with University of California for $11.5 Million
Goldman Sachs & Co. says it will settle a class action suit filed by the University of California (UC) over the purchase of Enron Corp. securities for $11.5 million. The University of California Board of Regents has approved the terms of the settlement.
Goldman allegedly marketed Enron 7% exchangeable notes via a registration statement that was false and misleading—this is a violation of the 1933 Securities Act.
UC says that it has so far received over $7.4 billion in settlements for Enron investors, including:
JP Morgan Chase: $2.2 billion
Canadian Imperial Bank of Commerce: $2.4 billion
Citigroup: $2 billion
Bank of America: $69 million
Lehman Brothers: $222.5 million
Andersen Worldwide: $33 million
Kirkland & Ellis LLP: $10.2 million
Arthur Anderson LLP: $72.5 million
Enron’s outside directors: $168 million
Barclays Bank, Merrill Lynch, Credit Suisse First Boston, Royal Bank of Scotland, Royal Bank of Canada, Toronto-Dominion Bank, and several ex-Enron officials have also been named as defendants by UC. The class involves some 1.5 million Enron stock and bond buyers whose losses due to the alleged fraud run over $40 billion.
Last month, U.S. Supreme Court refused to review the decision by an appeals court that blocks securities fraud claims made by Enron shareholders to recover damages from three large investment banks that allegedly helped Enron cover up its losses.
As an investor you have a right to get your money back if you have been the victim of investor fraud. Contact Shepherd Smith and Edwards today and ask for your free consultation with one of our experienced stockbroker fraud lawyers.
Related Web Resources:
Goldman Sachs settles with UC, Daily Bruin, February 9, 2008
Enron Securities Fraud Lawsuit, University of California
The Rise and Fall of Enron, New York Times