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Abacus Deal Still In Court
Jun 26, 2012
Remember the Abacus case against Goldman Sachs that the BRC's Roger Donway said involved a "moral counter-revolution"? Well, Goldman is still facing litigation over that deal: a judge recently refused to dismiss a lawsuit by people who'd bought Goldman stock.
The investors claim they were misled by Goldman's claims of adhering to high moral standards; Goldman claimed in its own defense that its praise of its own virtue should not have been taken seriously. Judge Paul A. Crotty rejeced that argument, saying that "if Goldman’s claim of ‘honesty’ and ‘integrity’ are simply puffery, the world of finance may be in more trouble than we recognize."