Difficult Times: Goldman Sachs Sued for $510 million along with Regulatory Penalties?

Regulatory misconduct?

Although the Malaysian High Court dismissed a similar suit, the private equity firm is pursuing the case against Wall Street giant for $510 million. The plaintiff claims Goldman Sachs alleged wrongdoing has cost them $170 million.

Primus Pacific Partners has claimed that Goldman Sachs and a former MD Tim Liessner had mislead private equity firm about their relationship with Malaysian Prime Minister and his government owned investment fund 1Malaysia Development Berhad, or 1MDB.

Goldman Sachs concealed “it’s close relationship and incentive to curry favor with the Prime Minister of Malaysia, who, in turn, had close family and business ties with HLB and others with an interest in the success of HLB’s bid for EON Capital,” – Primus

But the banking giant was equally resilient:

“This plaintiff previously lost its challenge in the Malaysian courts seeking to stop a transaction involving a Malaysian company, which was then approved by shareholders,”.

“We will vigorously contest this misguided additional lawsuit in New York court.” – Goldman Sachs said in a statement

 

But this is not it. It has been learned that Federal Reserve was about to impose a $50 million enforcement action against the bank over an information leak. An Ex Fed employee admitted to leaking confidential government information to a banker of Goldman Sachs, Rohit Bansal.

The both pleaded guilty.

 

Sources: Business Insider  /  Morning Consult

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