Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, January 23, 2013

Goldman cleared of all charges in doomed Dragon sale, (NYSE: GS)

A federal jury on Wednesday gave Goldman Sachs Group Inc a sweeping legal victory in the $580 million sale of Dragon Systems Inc to Lernout & Hauspie, saying the Wall Street bank was not negligent in arranging a deal that ultimately collapsed 13 years ago.The jury cleared Goldman of claims of negligence, intentional misrepresentation and breach of fiduciary duty, and others, in the civil case, according to the verdict announced in U.S. District Court in Boston.Dragon founders Jim and Janet Baker, pioneers in the field of speech recognition software, accused Goldman investment bankers of being negligent in the 2000 sale of their company to Belgium-based Lernout & Hauspie, which collapsed in a massive accounting fraud. The Bakers and two early Dragon employees sought several hundred million dollars in damages."We are pleased the jury rejected these claims. We fulfilled all our advisory duties to Dragon Systems," Goldman Sachs spokeswoman Tiffany Galvin said.

The Goldman Sachs Group, Inc. (Goldman Sachs) is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS fell by 0.27% or $-0.39/share to $145.56. In the past year, the shares have traded as low as $90.43 and as high as $146.28. On average, 4174340 shares of GS exchange hands on a given day and today's volume is recorded at 3946976.