The Goldman Sachs Group Inc. (NYSE: GS)
Hagens Berman Sobol Shapiro LLP updates shareholders of The Goldman Sachs Group Inc. (NYSE: GS) of the firm's ongoing investigation into whether certain officers and directors breached their fiduciary duties to shareholders in connection with a multibillion-dollar corruption scandal in Malaysia and Abu Dhabi.
Concerned long-term GS shareholders are encouraged to contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing GS@hbsslaw.com.
On December 21, 2018, the financial press reported Malaysia’s finance minister is seeking $7.5 billion in reparations from Goldman.
This follows reports that Goldman played a “central role” in a multibillion-dollar corruption scandal relating to bond sales that the Company arranged and underwrote for 1Malaysia Development Berhad (“1MDB”) in 2012 and 2013.
Malaysia accuses Goldman and two former employees of “grave violations” of its securities laws in connection with the 1MDB bonds. Meanwhile, Abu Dhabi’s International Petroleum Investment Company (IPIC), and its subsidiary, Aabar Investments PJS (Aabar), accuses Goldman of implicating IPIC in a money laundering scheme from 1MDB, and conspiring with others to bribe former executives of IPIC and Aabar, inducing them to “misuse the companies’ names, networks, and infrastructures to further the criminal schemes and to personally benefit Goldman Sachs.”
In a related development, the US Department of Justice (DOJ) announced that Tim Leissner, Goldman's former chairman of Southeast Asia, pleaded guilty to conspiring to launder money and conspiring to violate the Foreign Corrupt Practices Act through the payment of bribes to government officials in Malaysia and Abu Dhabi. According to the DOJ, a total of $4.5 billion was stolen from 1MDB by senior officials, with laundered funds pumped into New York condos, hotels, yachts, a jet, and used to fund movies such as “The Wolf of Wall Street.”
“We are focused on possible violations of the Board of Directors’ fiduciary duties towards the Company, resulting damages to it, and reports that its former Chairman and CEO (Lloyd Blankfein) met with the Malaysian financier at the center of the country’s fraud and bribery scandal,” said Hagens Berman partner Reed Kathrein.
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