Goldman Execs Hid 'Structured Exits' Scheme, Investor Says

Law360, Los Angeles (February 4, 2013, 8:32 PM EST) -- A Goldman Sachs Group Inc. shareholder filed a derivative suit against a slew of Goldman executives in New York federal court Friday, saying they concealed the fact that the company’s “structured exits,” designed to transfer risk of losses in long-term investments, like mortgage-backed securities, conflicted with clients’ interests.

The complaint, filed by shareholder Michael Brautigam on Friday, raises allegations that the global financial institution’s CEO Lloyd C. Blankfein and other top executives hid the fact that conflicts transpired in connection with the structured exits and filed...
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