Goldman Scoffs At Duty To Reveal SEC's Abacus Warning

Law360, New York (May 21, 2012, 7:10 PM EDT) -- Goldman Sachs Group Inc. told a New York federal judge Monday it had no duty to notify investors in July 2009 that securities regulators were weighing a suit over its Abacus collateralized debt obligation — litigation that later resulted in a $550 million settlement.

Goldman attorney Richard H. Klapper of Sullivan & Cromwell LLP asked the judge to dismiss a consolidated class action alleging the firm wrongly failed to disclose it had received a Wells Notice from the U.S. Securities and Exchange Commission. The notice indicated...
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