Goldman Sachs settles lawsuit over eToys I.P.O

Toys - GoĢˆzde Otman

As JPMorgan Chase works its way through its own legal morass, it can look to Goldman Sachs for an example of how long litigation can haunt a bank.

The New York Times reports that Goldman is poised to leave behind a long-running lawsuit over the 1999 initial public offering of eToys, an online toy retailer whose rise and fall became a symbol of the dotcom boom and bust.

A federal judge on Thursday approved a settlement of the matter, in which the investment bank will pay $7.5m to eToys creditors.

Though many of the specters of the dotcom frenzy have dissipated - and among them - eToys has lingered in legal system, including in courts in New York and Delaware.

At issue is the company’s I.P.O., which Goldman priced at $20. Shares in eToys leaped well above that in their first day of trading, closing at $77.

Critics of the process, including creditors, have argued that the Goldman-led offering enriched special clients of the firm at the expense of the retailer, which could have used the money to build much-needed infrastructure to keep up with demand.

Hit the link below to access the complete New York Times article:

Goldman Settles Lawsuit Over eToys I.P.O.

Computer Flaws Get Wry Smile From Humans Displaced

24 Hours Later, Fed’s Surprise Keeps Investors Scratching Their Heads

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts