The Supreme Court of the United States has upheld a divided judgment in an appeals court that states that a shareholder group's action that accused Goldman Sachs Group Inc. of concealing conflicts of interest could continue.
The Supreme Court granted its approval of the case, Arkansas Teacher Retirement System West Virginia Investment Management Board et al. v. Goldman Sachs Group et al. on Friday.
In its judgment of 2-1 on April 6 in the case, the Second U.S. Circuit Court of Appeals in New York held a lower court had not abused its discretion of the shareholder class. The plaintiffs claimed that the shareholders relied on the material errors of Newman-based Goldman when they chose to buy a hedge fund's share at the market price. in an agreement referred to in the New York decision, Goldman agreed to pay $ 550 million to regulators to regulate U.S. securities fees for how they market the subprime mortgage products.
Goldman Sachs said in a statement, "We are pleased that the Supreme Court has decided to hear our appeal."