Hagens Berman Updates Goldman Sachs (NYSE: GS) Investors Concerning Ongoing Investigation of Directors’ Possible Breaches of Fiduciary Duties

12/21/2018

San Francisco - National investor-rights law firm Hagens Berman Sobol Shapiro LLP updates shareholders of The Goldman Sachs Group Inc. (NYSE: GS) of the Firm’s ongoing investigation into whether certain Goldman officers and directors breached their fiduciary duties in connection with a multibillion-dollar corruption scandal in Malaysia and Abu Dhabi.

Concerned long-term Goldman shareholders are encouraged to contact Hagens Berman Sobol Shapiro LLP. For more information visit:

https://www.hbsslaw.com/cases/GS

or 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.

Whistleblowers:  Persons with non-public information regarding Goldman should consider their options to help in the investigation or take advantage of the SEC Whistleblower program.  Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.  For more information, call Reed Kathrein at 510-725-3000 or email gs@hbsslaw.com.

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About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with 80+ attorneys in 10 offices across the country.  The Firm represents investors, whistleblowers, workers and consumers in complex litigation.  More about the firm and its successes can be found at www.hbsslaw.com.  For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 510-725-3000


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12/18/18: Investigation