A U.S. judge on Friday dismissed seven lawsuits by investors who accused Goldman Sachs Group Inc and Morgan Stanley of market manipulation and insider trading before the collapse of Bill Hwang’s $36 billion Archegos Capital Management LP.
U.S. District Judge Paul Crotty in Manhattan rejected claims that the Wall Street banks, two of Archegos’ prime brokers, should be liable for dumping stocks they knew Archegos would be forced to sell after failing to meet margin calls in March 2021.
Investors who bought the stocks, which included ViacomCBS, Discovery and Baidu , said the combined selling left them with huge losses, while enabling Goldman and Morgan Stanley to avoid billions of dollars of their own losses.
Source: Goldman, Morgan Stanley win dismissal of investors’ Archegos lawsuits | Reuters
