Goldman, Morgan Stanley Acted On Insider Info, Suit Says
By Hannah Albarazi (October 13, 2021, 8:59 PM EDT) -- Goldman Sachs and Morgan Stanley avoided billions in losses tied to the risky trading of the now-defunct family office Archegos Capital Management by unloading shares on "unwitting investors" based on inside information, according to a securities class action filed Tuesday in New York federal court.
Investor Chew King Tan claims that the investment giants used insider information — that the Chinese investment firm Archegos Capital Management "failed (or was likely to fail) to meet a margin call, requiring it to fully liquidate its position" in the Chinese e-commerce company Vipshop Holdings Ltd. — to quickly unload large blocks of Vipshop shares...
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