- Goldman Sachs, CSFB Lose Bid To Dismiss Investors' IPO
Suits...
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- By David Glov in New York (Bloomberg) -- Goldman Sachs
Group Inc., Credit Suisse First Boston Inc., and 36 other investment banks
must defend against legal claims that they and hundreds of Internet start-ups
rigged initial public offerings. Investors say the banks and start-ups
they took public manipulated the IPO market during the technology stock
boom of the late 1990s. A federal judge rejected the banks' request to
dismiss the suits. Lawyers for the investors say damages might top $1 billion,
or about half of Goldman's profit in 2002.
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- Two months after the ten largest securities firms agreed
to pay about $1.4 billion to settle claims they misled customers with biased
stock research, Wall Street now must face civil litigation that may highlight
how some firms sacrificed integrity in the quest for fees. "Plaintiffs
have alleged one coherent scheme to defraud, the entire purpose of which
was to artificially drive up the price of the securities,'' U.S. District
Judge Shira Scheindlin said in a 238 page opinion.
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