Just three months ago, Goldman Sachs struck an unusual deal with a group of hedge funds to offload a buyout loan from its books - saving the bank and the funds from potential losses.
Bloomberg News reports that now, that odd arrangement is at the center of a lawsuit accusing the Wall Street firm of gorging on fees while exposing the acquirer in the buyout, United Natural Foods, to hedge-fund sharks who stand to reap gains if it falters. United Natural had hired Goldman Sachs for the takeover and is now demanding at least $52 million - and potentially much more - from the bank.
“I have never experienced this kind of egregious and immoral behavior from a bank in my entire life,” United Natural CEO Steve Spinner said in an interview after his company filed the suit Wednesday in a state court in New York. Goldman vowed to vigorously fight the case, calling it “entirely without merit.”
Hit the link below to access the complete Bloomberg News
Have something to tell us about this article?