Goldman Investors Say 2nd Circ. Ruling Backs Abacus Case
By Cara Mannion (March 7, 2017, 3:18 PM EST) -- A class of Goldman Sachs Group Inc. investors told the Second Circuit on Monday that the court's recent ruling against Vivendi SA allows it to rely upon the "price maintenance theory" in its suit over the bank's infamous Abacus collateralized debt obligation, saying Goldman's misstatements propped up inflated stock values.
The Second Circuit's partial acceptance of the price maintenance theory in a securities fraud class action against Vivendi shows that Goldman's investors don't need to prove that alleged misstatements about the Abacus CDO caused a stock-price increase, the investors argued in a letter to the court, saying the alleged misstatements could...
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