Los Angeles, CA: (Feb-6-08) The University of California brought charges against global investment firm Goldman Sachs Group, Inc., over investment losses from Enron Corporation. The suit stated that the investment firm used a false registration statement to sell the 7% exchangeable notes issued to investors by Enron. The notes were exchangeable for stocks at Enron Oil & Gas Company.
Records show that the University of California was the lead plaintiff in a class action lawsuit against Enron. To date, approximately 500,000 plaintiffs in the lawsuit, led by the university, have received about $7.3 billion in settlements. University spokespersons stated that as the lead plaintiff in the case, it sought repayment for investments made with the company from banks, law firms and individuals who were involved with the investments.
A settlement has been reached between the University of California and Goldman Sachs Group, in which Goldman Sachs will pay $11.5 million to resolve litigation. The settlement announcement comes shortly after the US Supreme Court rejected the university's suit against banks alleged by the university to be responsible for their involvement in Enron's investment fraud. [