Supreme Court Drops Lawsuit against Goldman Sachs

The Supreme Court of the United States on Monday ruled in favor of Goldman Sachs in its attempt to avert a lawsuit that accused that bank of concealing conflict of interest when it created risky subprime securities prior to the financial crisis in 2008, CNBC informed.

Supreme Court Justices tossed a decision by the 2nd US Circuit Court of Appeals based in Manhattan that allowed shareholders from Goldman to file lawsuit collectively under the federal investor protection legislative. The plaintiffs has issued accusations toward Goldman Sachs of unlawfully concealing conflicts of interest when making the risky subprime securities.

The Justices from SCOTUS argued that the lower court did not manage to properly assess if Goldman’s statements that investors described as misleading were too generic to affect the stock price.

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