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Goldman's Plea to Dismiss Class-Action Lawsuit Gets Rejected
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The Goldman Sachs’ (GS - Free Report) request to dismiss a class-action lawsuit filed by its shareholders was recently rejected by a Manhattan court. The lawsuit accuses the company of making fraudulent claims that it prioritized customer interests over its own, while creating risky subprime securities back in 2008.
Per the U.S. Circuit Court of Appeals, the company failed to comply with a legal presumption that “the shareholders relied on Goldman’s alleged misstatements in purchasing its stock at the market price”.
Amid the near financial crisis, Goldman’s representatives made statements such as “clients’ interests always come first”, “our extraordinary focus on our clients” and many more, which seem to conflict with its action regarding subprime securities.
U.S. District Judge Paul Crotty gave a green signal to shareholders of the company in August 2018 to sue as a group on lack of evidence from Goldman to prove that the statements made by it at the time of selling risky products had no impact on its stock price.
It was the second time that Crotty approved shareholders’ request for suing Goldman. In 2015, he approved the request, which was later on reversed by a U.S. appeals court, stating that there is a need for a trial judge to review whether the company’s misrepresentations affected its market price.
Previously, the court also rejected Goldman’s argument that allowing class actions based on “general” misstatements would turn securities fraud claims into “a form of investor insurance”, exposing companies to a flood of baseless litigations.
Goldman’s investors from February 2007 to June 2010, including The Arkansas Teacher Retirement System, claimed to have suffered losses of more than $13 billion due to its misdeeds.
The stock has lost 15.6% over the past six months compared with the industry’s decline of 6.9%.
Currently, Goldman carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider From the Sector
Meridian Bancorp, Inc. has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Also, this Zacks #1 Ranked (Strong Buy) stock has plunged 43.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Waterstone Financial, Inc.’s (WSBF - Free Report) ongoing-year earnings estimate moved up in the past 60 days. Further, the company’s shares have declined 20.9% over the past six months. At present, it carries a Zacks Rank of 2 (Buy).
Evercore Inc.’s (EVR - Free Report) current-year earnings estimate moved north in 60 days. Additionally, the stock has depreciated 28.4% over the past six months. It currently carries a Zacks Rank #2.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
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Goldman's Plea to Dismiss Class-Action Lawsuit Gets Rejected
The Goldman Sachs’ (GS - Free Report) request to dismiss a class-action lawsuit filed by its shareholders was recently rejected by a Manhattan court. The lawsuit accuses the company of making fraudulent claims that it prioritized customer interests over its own, while creating risky subprime securities back in 2008.
Per the U.S. Circuit Court of Appeals, the company failed to comply with a legal presumption that “the shareholders relied on Goldman’s alleged misstatements in purchasing its stock at the market price”.
Amid the near financial crisis, Goldman’s representatives made statements such as “clients’ interests always come first”, “our extraordinary focus on our clients” and many more, which seem to conflict with its action regarding subprime securities.
U.S. District Judge Paul Crotty gave a green signal to shareholders of the company in August 2018 to sue as a group on lack of evidence from Goldman to prove that the statements made by it at the time of selling risky products had no impact on its stock price.
It was the second time that Crotty approved shareholders’ request for suing Goldman. In 2015, he approved the request, which was later on reversed by a U.S. appeals court, stating that there is a need for a trial judge to review whether the company’s misrepresentations affected its market price.
Previously, the court also rejected Goldman’s argument that allowing class actions based on “general” misstatements would turn securities fraud claims into “a form of investor insurance”, exposing companies to a flood of baseless litigations.
Goldman’s investors from February 2007 to June 2010, including The Arkansas Teacher Retirement System, claimed to have suffered losses of more than $13 billion due to its misdeeds.
The stock has lost 15.6% over the past six months compared with the industry’s decline of 6.9%.
Currently, Goldman carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider From the Sector
Meridian Bancorp, Inc. has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Also, this Zacks #1 Ranked (Strong Buy) stock has plunged 43.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Waterstone Financial, Inc.’s (WSBF - Free Report) ongoing-year earnings estimate moved up in the past 60 days. Further, the company’s shares have declined 20.9% over the past six months. At present, it carries a Zacks Rank of 2 (Buy).
Evercore Inc.’s (EVR - Free Report) current-year earnings estimate moved north in 60 days. Additionally, the stock has depreciated 28.4% over the past six months. It currently carries a Zacks Rank #2.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>