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Supreme Court to revisit shareholder class action threshold


Supreme Court to revisit shareholder class-action threshold
The U.S. Supreme Court in Washington
The Supreme Court agreed Friday to review a petition by Goldman Sachs Group challenging a class-action suit led by the $17.6 billion Arkansas Teacher Retirement System over misrepresentations made to investors during the subprime mortgage crisis, and questioning whether shareholders have too much power to pursue such class-action alliances.
Other plaintiffs in the suit include the $16 billion West Virginia Investment Management Board, Charleston, and the $6.2 million Plumbers and Pipefitters National Pension Fund, Alexandria, Va.
The 2011 lawsuit stemmed from Goldman Sachs Abacus collateralized debt obligation, a subprime mortgage-based financial instrument assembled with the help of hedge fund Paulson & Co. Its contrary bet against the CDO was not disclosed to investors, leading in 2010 to Goldman Sachs $550 million settlement with the Securities and Exchange Commi ....

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