Goldman Undervalued EToys' $178M IPO: Atty

Law360, New York (June 7, 2011, 6:16 PM EDT) -- Goldman Sachs Group Inc. undervalued a $178 million initial public offering at the height of the dot-com bubble so its other clients could cash in, an attorney for a now-defunct online retailer told a New York state appeals court Tuesday.

The investment bank undervalued the stock when it served as the underwriter for the IPO of eToys Inc., an online retailer that went bankrupt after the dot-com bust and is now owned by Toys “R” Us Inc.,  according to Stanley M. Grossman of Pomerantz Haudek Grossman...
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