Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
10Activity
0 of .
Results for:
No results containing your search query
P. 1
Marvell Co-Founders' Lawsuit Against Goldman Sachs

Marvell Co-Founders' Lawsuit Against Goldman Sachs

Ratings: (0)|Views: 8,023 |Likes:
Published by DealBook
Marvell Co-Founders' Lawsuit Against Goldman Sachs
Marvell Co-Founders' Lawsuit Against Goldman Sachs

More info:

Published by: DealBook on Apr 12, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/30/2012

pdf

text

original

 
1KEKER
&
VANNESTLLPJOHNW.KEKER-#490922SUSANJ.HARRIMAN-#111703MICHAELD.CELIO-#1979983REIDP.MULLEN-#270671710SansomeStreet4SanFrancisco,CA94111-1704Telephone:(415)391-54005Facsimile:(415)397-7188Email:jkeker@kvn.com6sharriman@kvn.commcelio@kvn.com7rmullen@kvn.com8COTCHETT,PITRE
&
MCCARTHY,LLPJOSEPHW.COTCHETT-#363249PHILIP
L.
GREGORY-#95217NANCIE.NISHIMURA-#15262110MARYF.MOCK-#249379SanFranciscoAirportOfficeCenter11840MalcolmRoad,Suite200Burlingame,CA9401012Telephone:(650)697-6000Facsimile:(650)697-057713Email:jcotchett@cpmlegal.compgregory@cpmlegal.com14nnishimura@cpmlega1.commmock@cpmlegal.com15AttorneysforPlaintiffs16WEILlDAIandSEHATSUTARDJA171819SUPERIORCOURTOFTHESTATEOFCALIFORNIAINANDFORTHECOUNTYOF~ANFRANCISCO20WEILlDAIandSEHATSUTARDJA,Case~.
GC
w,,
ft#
5
1
a,
02
212223Plaintiffs,
v.
GOLDMANSACHS
&
CO.;24BRADLEYDEFOOR;GRAHAMBRANDT;and25DOES1through20,inclusive,
26
Defendants.2728COMPLAINTFOR:(1)COMMONLAWFRAUD;(2)BREACHOFFIDUCIARYDUTY;(3)VIOLATIONSOFTHECONSUMERSLEGALREMEDIESACT(Civ.Code§1750etseq.);and,(4)UNFAIRCOMPETITION(Bus.
&
Prof.Code§17200etseq.)DEMANDFORJURYTRIAL
COMPLAINTCASENO.
 
1
2
3
COMPLAINTCASENO.
I.INTRODUCTION
"Goldmanrepeatedlyputitsowninterestsandprofitsaheadoftheinterestsofitsclients."
4
SenatorCarlLevin
ChairofthePermanentSubcommitteeonInvestigationsoftheSenateHomelandSecurityandGovernmentalAffairsCommittee
5
6"[QJuestionshavebeenraisedthatgototheheartofthisinstitution'smostfundamentalvalue:howwetreatourclients."
7
8
9
LloydC.Blankfein
GoldmanSachs'sChiefExecutiveOfficer,attheFirm'sannualmeetinginMay,201010
11
121314
15
16
17
18
19
2021
22
23242526271.In2008,Goldmanmadeafirm-widedecisiontoputtheFirm'sinterestsaheadofitsclients.Seekingtoavoidthesevereeconomicenvironmentandrealizingitsbusinessmodelwasfailing,Goldmanmanipulatedthefinancialcrisisof2008totakeadvantageofitscorporateandindividualclients.Goldman's"businessmodelhascompletelyblurredthedifferencebetweenexecutingtradesonbehalfofcustomersversusexecutingtradesforthemselves.It'sahugeproblem."!Throughaseriesofextraordinaryanddeceitfulacts,gearedtosaveGoldmanatallcosts,theFirmuseditsclients'accountstoleverageitssuccess,makingunreasonablecollateralcallsonitsprivatewealthmanagementclients.Despitereceivinganinvestmentof$10billionasaparticipantintheUnitedStatesTreasury'sTARPCapitalPurchaseProgram,Goldmanforceditsclientstounnecessarilyliquidatetheirholdingsthroughforcedmargincalls,onlytorepurchasethesesameshareholdingsforaccountsownedbyGoldmananditsrelatedhedgefunds,somecurrentlyunderinvestigationbythefederalgovernment.Goldman'sfocuswastostrengthenitsbalancesheet,nomatterhowmanyrelationshipsweredestroyedintheprocess.TheconsequencestoGoldmanclients,suchasPlaintiffs,weredisastrous.Theybecamethevictimsofoneofthelargestactsofcorporategreedandavariceinthehistoryofourfinancialmarkets.28
1
NewYorkTimes,"ClientsWorriedAboutGoldman'sDuelingGoals,"May18,2010.
1
 
12.Goldmanistheworld'smostprominentinvestmentbank.
It
isaWallStreetgiantwith2reported2010revenueinexcessof$39billion-payingitsChiefExecutiveOfficer,Lloyd3Blankfein("Blankfein")19million..Amongotherthings,Goldmanprovides"wealth4managementservices,"managingtheinvestmentsofwealthyindividuals.Publicly,theFirmhas5adamantlyrepresenteditscoregoalisan"unwaveringcommitmenttoclientservice.,,2Goldman,6however,makesmostofitsmoneybytradingsecuritiesforitsownbenefit.Inthematters7describedherein,whenthesetwopartsofGoldman'sbusinessconflicted,Goldmanputitsown8interestsinmaximizingprofitsaboveitsfiduciaryobligationstoitsclients.93.ThecultureofcorruptionatGoldmanhasrecentlybeenrevealedthroughthemajor10insidertradingschemesofGalleonfounderRajRajaratnamandhisconnectionswithGoldman11throughformerGoldmandirectorRajatGupta.Accordingtotheallegationsmadebythe12SecuritiesandExchangeCommission,whileservingasaGoldmandirector,Guptarepeatedly13passedinsiderinformationfromGoldmandirectormeetingstoRajaratnam.144.Thegovernment'scasesagainstRajaratnamandGuptaarethetipoftheiceberg.15Federalprosecutorshavealsobroughtchargesagainstindividualsassociatedwithanexpert16networkingfirm,PrimaryGlobalResearch.AmongtheactionsfiledbytheDepartmentof17JusticeisthecriminalcaseagainstSamirBaraiandWinifredJiau.ThegovernmentclaimsBarai18andJiaucommittedsecuritiesfraudwhentheydiscussedmaterial,insideinformationabout,19amongothercompanies,MarvellTechnologyGroup,Ltd.("Marvell"),apubliccompanythat20tradesovertheNASDAQ.ThegovernmentassertsBaraicausedahedgefund,whichPlaintiffs21areinformedandbelieveisassociatedwithGoldmanSachs,topurchaseover200,000sharesof22Marvellstock.TherelevanttimeperiodofBaraiandJiau'scasescoincidewiththetimeframeof23theinstantaction.245.Insidertradingisnotavictimlesscrime.Shareholdersinthecompaniessubjecttothe25insidertradessufferedduetoimproperdisclosures.Stockpricesweremanipulatedtotipoff26selectedinvestorsandhedgefundsattheexpenseofothers.Theimpropertradescaused27significantmovementinstockprices.Specificpubliccompaniesweretargetedbytheseinsider282GoldmanFourthQuarter2009EarningsCall.January21,2010.
2
COMPLAINTCASENO.

Activity (10)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Paul Heidemann liked this
Paul Heidemann liked this
asong_soekamti liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->