Goldman Sachs Group, Inc. (“Goldman” or the “Company”) (NYSE:GS) is a financial holding company that provides global banking, securities and investment management services in the United States and internationally.
According to a press release dated April 26, 2010, a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Goldman between October 15, 2009 and the time it was publicly revealed on April 16, 2010 that the Securities and Exchange Commission (“SEC”) had sued Goldman (the “Class Period”) in connection with its misconduct relating to the formation and sale of ABACUS 2007-AC1, seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). Specifically, the Complaint charges Goldman and certain of its officers and executives with violations of the Exchange Act.
The Complaint alleges that throughout the Class Period, Defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the Complaint alleges that Defendants failed to disclose that: (i) the Company had, in violation of applicable law, not fully disclosed the facts and circumstances concerning the formation and sale of the ABACUS 2007-AC1 deal to investors such that it had engaged in misleading conduct; (ii) the Company had, in fact, bet against its clients and constructed collateralized debt obligations that were likely, if not designed, to fail; and (ii) the Company had received a Wells Notice from the SEC about the ABACUS transaction but failed to inform shareholders of this fact.
After the market opened on April 16, 2010, it was revealed that Goldman’s U.S. broker-dealer, GS&C, had been sued by the SEC “for making materially misleading statements and omissions in connection” with ABACUS 2007-AC1. As news of Goldman’s misconduct reached the market, Goldman stock immediately plummeted $24.05, declining from $184.27 per share on April 15, 2010 to close at $160.70 per share on April 16, 2010.
The Plaintiffs filed several motion to consolidate and appoint lead Plaintiff. On March 25, 2011, the Court entered the Order signed by Judge Paul A. Crotty consolidating several actions under In re Goldman Sachs Group, Inc. Securities Litigation, Master File No. 1:10-cv-03461- PAC. According to the Order, the Clerk of Court is further ordered to list the following as lead Plaintiffs: Pension Group, consisting of the Arkansas Teachers Retirement System, the West Virginia Investment Management Board, and the Plumbers and Pipefitters Pension Group. It is further stated that the Clerk of Court list the law firm of Robbins Geller Rudman & Dowd, LLP and Labaton Sucharow, LLP as co-lead Counsels for the class. On July 25, 2011, a Consolidated Class Action Amended Complaint was filed. The Defendants responded by filing a motion to dismiss on October 6, 2011.
In June 21, 2012, the Court issued an Order granting in part and denying in part Defendants' motion to dismiss.
On September 24, 2015, the Court issued an Order granting the motion to certify a class in this action. Defendants appealed the District Court's Order certifying the class on January 28, 2016. On January 12, 2018, the Court of Appeals vacated the Order of the District Court certifying the class and remanded for further proceedings. On August 14, the District Court issued an Order granting Plaintiff's motion to certify a class. Defendants filed a notice appealing the Court's Class Certification Order on December 11. On April 7, 2020, the Court of Appeals affirmed the District Court's certification of the class. Defendants petitioned for a writ of certiorari on August 25.
On June 21, 2021, the Supreme Court vacated the Court of Appeals' ruling and remanded to the Court of Appeals. On August 26, the Court of Appeals vacated the Class Certification Order and remanded to the District Court for further proceedings. On December 8, the District Court granted Plaintiff's Motion for Class Certification.
On March 23, 2022, the Court of Appeals issued a Mandate granting the petitioners' request, pursuant to Federal Rule of Civil Procedure 23(f), for leave to appeal the December 8, 2021 order of the District Court granting class certification. On August 10, 2023, the Court of Appeals issued an Opinion reversing the District Court's class certification decision and provided instructions to decertify the class.
Lead Plaintiffs voluntarily dismissed the case on November 16, 2023.