Wednesday, October 8, 2014

Libyan Fund Scores in Legal Wrangle With Goldman Sachs

London-The Libyan Investment Authority has compelled Goldman Sachs to reimburse it for legal costs it incurred when the financial services titan tried in August to have the LIA's one billion dollar lawsuit against it resolved at a summary trial,instead of at a full hearing.The presiding judge found after a two-day hearing that Goldman should never have submitted the application for summary judgement.In consequence,Goldman must now fork over at least 200,000 pounds to the LIA for its expenses-and possibly as much as 680,000 pounds.
The full hearing on the case will likely begin in 2016.*
The LIA,a sovereign wealth fund,alleges that Goldman Sachs took them for a complete ride.It exploited the LIA and its ignorant staff by encouraging them to make nine very risky investments of over one billion dollars that ultimately failed.Goldman bribed the staff with luxury gifts such as a junket to Morocco with heavy drinking and girls,as well as expensive nights out on the town in London.
Goldman responds that it simply offered small gifts to cement a strategic partnership with key LIA staff,who were actually quite experienced international bankers.In fact,the transactions in question were relatively straightforward and easy to understand,and the investments would have succeeded in more favourable market conditions,Goldman Sachs pointed out.*
Goldman Sachs(GS)