Judge allows Goldman Sachs shareholder suit to proceed
DOVER, Del. (AP) — A Delaware judge has refused to dismiss a shareholder lawsuit alleging that Goldman Sachs directors excessively compensated themselves over several years.
The judge ruled that the lawsuit could proceed on a derivative claim for breach of the fiduciary duty of loyalty based on excessive compensation of non-employee directors. He granted the company’s request to dismiss other claims involving alleged breaches regarding disclosures to stockholders.
Friday’s ruling comes after the judge refused last year to approve a settlement in the case
In the settlement, Goldman Sachs promised to make certain disclosures and to pay $575,000 in attorney fees and expenses.
The judge said that, in return for release of monetary claims against them, the director defendants gave up nothing and essentially agreed just to abide by their mandated fiduciary duties.