Goldman, Leap Fend Off Investor Suit Over Short-Swing Trades

Law360, New York (June 6, 2012, 11:36 PM EDT) -- The Goldman Sachs Group Inc. on Tuesday successfully defeated a lawsuit brought by a Leap Wireless International shareholder who claimed the investment bank owed the company for nearly $2 million in short-swing trade profits of Leap derivatives.

U.S. District Judge J. Paul Oetken found that Goldman's liability under the U.S. Security and Exchange Commission's short-swing rule didn't apply because the company did not maintain a 10 percent ownership stake — the threshold for insider scrutiny under the statute — when a series of short call options...
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