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Goldman flags Archegos-related lawsuits as potential legal risks -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This sign can be seen at Goldman Sachs’ reception in Sydney (Australia), May 18, 2016. REUTERS/David Gray/File Photo/File Photo

(Reuters). Goldman Sachs Group Inc (NYSE: ) stated that it was being sued by Archegos for alleged insider trading in relation to its meltdown. The filing, which took place Monday, highlighted the potential risks and flagged the lawsuits.

Three shareholders filed lawsuits against Vipshop Holdings Ltd., GSX Techedu Inc. Tencent Music Entertainment Group (NYSE: ) – The bank is accused of selling shares in the companies, based on “material not public information concerning the liquidation Archegos position”, according the filing.

Goldman was among several banks that lent Archegos Capital Management money. This family office, run by Bill Hwang (ex-Tiger Asia manager), defaulted on its margin calls in the earlier part of this year. It triggered a stock sale, including shares in Discovery (NASDAQ) Inc.

The collapse of the fund led to global banks losing over $10 billion. Credit Suisse (SIX 🙂 This is the lender that has been most severely affected.

Goldman indicated that three lawsuits filed against Goldman last month were brought in New York by a federal court. They seek damages not specified.

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