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Wednesday, November 12, 2014

Goldman Sachs defeats appeal over collapsed buyout, (NYSE: GS)

Goldman Sachs Group Inc has defeated a married couple's appeal in a lawsuit accusing the Wall Street bank of negligence for arranging the $580 million sale of their speech-recognition company to Lernout & Hauspie, which soon collapsed in an accounting fraud.The 1st U.S. Circuit Court of Appeals in Boston on Wednesday let stand rulings against James and Janet Baker, who hired Goldman to coordinate the all-stock takeover of Dragon Systems Inc at the height of the 2000 technology bubble.Goldman had been accused by the Bakers and two former Dragon employees of negligence, misrepresentation, breach of fiduciary duty and unfair business practices for letting the sale go through despite concerns about Lernout's accounting.A federal jury ruled for Goldman on most claims in January 2013, and a judge ruled for Goldman on the remaining unfair business practices claim five months later.

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 0.89% or $-1.7/share to $190.18. In the past year, the shares have traded as low as $151.65 and as high as $192.68. On average, 2767450 shares of GS exchange hands on a given day and today's volume is recorded at 2322055.