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.”
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