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| 2004
News and Press Releases |
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SETTLEMENT "OR" DISMISSAL:
Goldman Says IPO Issuers Settle With Underwriters
By: Staff Writer
AFX.COM. July 9, 2004
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EXCERPT: Goldman Sachs said Friday that a group of companies suing certain underwriting firms for alleged double-dealing of shares in their role as middlemen for the companies' initial public offerings, have agreed to settle lawsuits against the firms. The firms allege that underwriters manipulated the allocation of IPO shares via secret, self-dealings, and did not disclose the existence of arrangements that tied allocations to higher customer brokerage commission rates and purchase orders, aftermarket. Goldman said in its quarterly report filed Friday with the Securities and Exchange Commission that the IPO issuers accused underwriters of failing to disclose the arrangements. Goldman Sachs and other financial services firms have been under intense scrutiny by regulators over their practices for brokering IPOs. A week ago, Goldman agreed to pay $2 million to settle charges it improperly marketed initial public offerings in 1999 and 2000. Goldman Sachs did not immediately return a phone call requesting comment. Separately, Goldman agreed to pay $12 million to AMF Bowling to resolve litigation over its handling of the firm's IPO, however, the settlement is still subject to the approval of the courts. Goldman shares gained 35 cents to trade at $90.35 in midmorning trading. Elsewhere in the filing, a judge awarded class action status for a group of complaints against Goldman Sachs' family of mutual funds seeking an accounting of all the funds' fees, commissions and other payments and restitution of "unlawfully or discriminatorily-obtained fees and charges," among other things.
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