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Administration September 26, 2011
Goldman Sachs Wins Dismissal of Shareholder Lawsuits
September 26, 2011 (PLANSPONSOR.com) – Goldman Sachs won
dismissal of lawsuits brought by shareholders who claimed executive bonuses were
“a waste of assets”.
Reported by PLANSPONSOR staff
According to Bloomberg, the plaintiffs, the Security Police & Fire Professionals of America Retirement Fund and Judith A. Miller, sued the investment bank in December 2009, accusing directors and executives of breaching their fiduciary duties by reserving half of the company’s net revenue for employee compensation. Shareholders Ken Brown and Central Laborers Pension Fund filed similar suits the following month.
New York State Supreme Judge Bernard J. Fried ordered the lawsuits dismissed on September 21. The plaintiffs had agreed to the dismissal in January 2010, after New York-based Goldman Sachs said its ratio of compensation and benefits to net revenue for 2009 was its “lowest as a public company,” reports Bloomberg.
Fried denied the plaintiffs’ request for attorney fees and expenses, and rejected Brown’s request for an incentive fee award of $25,000.
The cases are Brown v. Blankfein and Central Laborers’ Pension Fund v. Goldman Sachs.