Goldman Escapes Investor Suit Over High Pay Rates

Law360, New York (October 12, 2011, 6:19 PM EDT) -- A Delaware judge on Wednesday dismissed a derivative suit alleging Goldman Sachs Group Inc.'s board of directors shortchanged the company's shareholders by approving a plan to award employees excessive compensation.

But the plaintiffs have pled facts that "if true, support only a conclusion that the directors made poor business decisions," Vice Chancellor Sam Glasscock III wrote in an opinion tossing the complaint.

The suit — lodged by shareholder Southeastern Pennsylvania Transportation Authority in 2010 — claimed the investment bank’s directors should be held liable for approving...
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