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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.