Goldman Sachs sued for fraud

12 April 2011

Goldman Sachs Group is being sued for fraud by the co-founders of Silicon Valley chip maker Marvell Technology Group.

Marvell's chief executive officer Sehat Sutardja and its former chief operating officer Weili Dai have accused the investment bank of tricking them into selling company shares by suggesting such an offload was required in order for a margin loan to be covered.

The duo claimed the shares, which were sold in 2008, are now worth $141.5 million.

According to the complaint, Goldman Sachs put pressure on the pair by stating a non-existent regulatory rule meant they had to sell the stock.

"Goldman forced its clients to unnecessarily liquidate their holdings through forced margin calls, only to repurchase these same shareholdings for accounts owned by Goldman," it was claimed.

Earlier in the month, it was reported that Goldman Sachs chairman Lloyd Blankfein received $19 million compensation for 2010 - almost double what he was given a year earlier.

By Claire Archer

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