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Wednesday, January 23, 2013

Goldman not negligent in arranging Dragon sale -jury, (NYSE: GS)

A jury said on Wednesday that Goldman Sachs Group Inc was not negligent in the $580 million sale of Dragon Systems Inc to Lernout & Hauspie, which collapsed afterward in a massive accounting fraud scandal. The jury said that Goldman, the New York investment bank, did not make negligent misrepresentations during the sale process, according to the verdict announced in the civil case 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. The Bakers and two early Dragon employees sought several hundred million dollars in damages.But lawyers for Goldman said it wasn't the investment bank's job to sniff out the accounting fraud that ultimately doomed Lernout & Hauspie and made the remaining stock held by the Bakers worthless. The Bakers owned 51 percent of the company but only were able to sell a few million dollars worth of L&H stock before the collapse.

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 3900787.