Goldman Sachs Didn't Shortchange EToys IPO: NY Court

Law360, New York (December 8, 2011, 8:07 PM EST) -- A divided New York state appeals court ruled Thursday that Goldman Sachs Group Inc. didn't undervalue a $178 million initial public offering for a now-defunct online toy retailer so that the investment bank's other clients could cash in.

EToys Inc., which went bankrupt after the dot-com bust and is now owned by Toys R Us Inc., alleged that Goldman had a fiduciary relationship with the retailer and that it had undervalued eToy's stock in its IPO.

But testimony and documentary evidence showed that the parties had...
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