EToys IPO Suit Against Goldman Heads To NY High Court

Law360, New York (September 7, 2012, 4:13 PM EDT) -- New York's highest court agreed Thursday to hear an appeal from now-defunct online toy retailer eToys Inc. accusing Goldman Sachs Group Inc. of breaching its fiduciary duty to the company by undervaluing its $178 million initial public offering. 

The order from the Court of Appeals of the State of New York allows eToys to challenge a lower court's 2011 summary judgment dismissal of its suit alleging Goldman breached its fiduciary relationship by underpricing the retailer's IPO for the benefit of investor-clients.

"We are gratified to see that the...
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