Goldman Sachs ($GS) Investor Settlement
Goldman Sachs has reached a tentative settlement to resolve investor claims that it hid Jho Low’s role in the 1MDB bond deals and misled investors about its compliance controls, risk oversight, and the nature of the fees it earned.
Outline:
Goldman told investors its compliance and risk controls were strong and that it had no evidence Jho Low was involved in the 1MDB bond deals. Investors say the bank actually knew Low was central to the transactions and had visibility into serious corruption and diversion risks. On November 8 and 9, 2018, reports tied Lloyd Blankfein to meetings with Low and Najib, undercutting Goldman’s public denials. $GS fell over the correction period, and the matter has now moved to a tentative settlement.
Timeline:
December 22, 2016: Goldman Sachs was allegedly presenting its risk management standards as strong while distancing itself from Jho Low’s role in the 1MDB bond deals.
November 8, 2018: Reports revealed that Lloyd Blankfein had met with Najib and Jho Low in 2009 regarding 1MDB. $GS fell $9.00 to close at $222.65.
November 9, 2018: Additional reports said Blankfein also met with Low and Najib in 2013 after compliance concerns had already been raised.
November 12, 2018: $GS fell 7.5% to close at $206.05 per share.
Background:
Goldman Sachs earned major fees from the 1MDB bond transactions and told investors those fees reflected legitimate underwriting risk. The bank also presented its compliance, integrity, and risk controls as strong.
Investors say that picture was misleading. According to the text provided, Jho Low was not some unknown outsider but a key intermediary in the 1MDB deals, despite Goldman’s public effort to distance itself from him.
The allegations also say Goldman had visibility into suspicious diversion of bond proceeds and serious corruption risks tied to the transactions. Investors further claim the bank downplayed internal warnings and red flags while continuing to defend the legitimacy of the deals and the fees it earned.
That narrative came under pressure in November 2018, when reports tied Lloyd Blankfein to meetings with Low and Najib in both 2009 and 2013. Investors say those revelations undercut Goldman’s public denials and exposed deeper involvement in the 1MDB bond transactions.
After those reports, $GS fell sharply over several trading days. The matter has now moved to a tentative settlement, though the text provided does not state the amount or next key dates.
What Can Investors Expect Now?
Goldman Sachs has reached a tentative settlement to resolve investor claims that it hid Jho Low’s role in the 1MDB bond deals and misled investors about its compliance controls, risk oversight, and the nature of the fees it earned.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities that purchased or otherwise acquired Goldman’s common stock between December 22, 2016, and November 8, 2018, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.