Goldman Sachs Group Inc (NYSE:GS) is having an excellent year in terms of its legal battle wins. With other financial crisis accusers including Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C) paying $16 billion and $7 billion in settlements, Goldman Sachs Group Inc (NYSE:GS) settled its lawsuits for $1.2 billion.
Goldman Sachs Group Inc (NYSE:GS) has been able to evade several large government penalties and claims this year. In the sale of faulty mortgages to the leading government agencies, Fannie Mae and Freddie Mac, Goldman Sachs Group Inc (NYSE:GS) was able to settle the case with $1.2 billion. This is not the only matter where the firm is having an excellent run.
Earlier, the bank was able to fight away the claims of one of its former employees, Sergey Aleynikov, accused of stealing the trading secret. As per the company rules, Goldman Sachs Group Inc (NYSE:GS) has to cover the legal expenses of any of its employees, directors, and officers who are accused of legal wrongdoings while doing their job in the company. Sergey Aleynikov was the inspiration of bestseller “Flash Boys” and he claimed $2.4 million from the bank to cover for the legal issues.
In addition to it, New York Supreme Court rejected a claim from one of the former employees for getting deserved bonus for his work. Deed Salem, former employee at Goldman Sachs Group Inc (NYSE:GS), sued the bank in 2010 for paying $4.75 million less than the deserving bonus for his work. The bank considered these claims to be “utterly ridiculous.”
With major favorable decision in the court, Goldman Sachs Group Inc (NYSE:GS) is certainly sailing better than its competitors Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C) on a legal front.
This article has been written by Prakash Pandey.
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