Fiduciary Duty To IPO Clients Hangs By Thread In NY Appeal

Law360, New York (May 24, 2013, 7:25 PM EDT) -- In taking claims that Goldman Sachs Group Inc. fleeced a now-defunct toy retailer by undervaluing its $178 million initial public offering, legal experts say New York's top court has the chance to put to rest doubts over the notion that bankers owe a fiduciary duty to clients dipping into equities markets.

The New York Court of Appeals is set to hear arguments Wednesday in an appeal brought by creditors for bankrupt eToys Inc. who argue that client conflicts encouraged the financial services giant to push a...
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