Goldman Drops $100M To Settle Insurance Co. Case

Law360, New York (November 7, 2008, 12:00 AM EST) -- Goldman Sachs Group Inc. has agreed to pay $100.5 million to settle charges that it helped bring about the downfall of General American Life Insurance Co. by recklessly encouraging an initial public offering, among other things.

Paul E. Kovacs, an attorney representing former policyholders of General American, said a judge in Missouri state court had approved the deal Thursday. Overall, the policyholders have now recovered about $250 million of the roughly $1 billion they allegedly lost.

“I'm pleased,” Kovacs said. “I wish we didn't have these...
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