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| 2001 News and Press Releases |
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HEADLINE ARCHIVED:
Goldman Sachs, Deutsche Banc Will Appeal Bid To Oust IPO Judge
By: David Glovin
Bloomberg News. December 7, 2001
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Excerpt: Goldman Sachs Group Inc., Deutsche Banc Alex Brown Inc. and other investment banks accused of rigging initial public stock offerings plan to appeal a failed bid to disqualify the judge overseeing the cases, a lawyer said. More than 40 investment banks and 263 technology companies they took public have been sued over the IPOs. The plaintiffs say the banks secretly allocated IPO shares to investors who agreed to buy more shares later at higher prices, creating an artificial demand for the stock. Lawyers say damages could top $1 billion. U.S. District Judge Shira Scheindlin, who is presiding over the preliminary phase of the class-action cases until they get assigned to other judges for trial, last week denied a request by many of the banks to recuse herself. The banks said she, her husband, and her adult son had owned stock in some of the technology companies and that she might appear biased.
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