Shareholders suing Goldman Sachs over executive pay seize on SEC investigation
By Randall Chase, APFriday, April 30, 2010
Shareholders revise Goldman Sachs lawsuit
DOVER, Del. — Shareholders suing Goldman Sachs over executive pay packages are seizing on investigations of the Wall Street bank by the Senate and Securities and Exchange Commission.
A shareholder pay complaint filed earlier this year in Delaware was amended this week to take into account the Senate’s findings and the SEC’s civil fraud case alleging that Goldman misled investors about securities tied to home loans.
In addition to claiming that Goldman directors breached their fiduciary duties by allowing excessive pay for employees, the shareholders now say Goldman officials failed in their fiduciary duty to properly oversee the company.
They also are asking the court to order the company to take steps to detect and prevent illegal and unethical conduct by Goldman employees and representatives.
