Goldman Sachs abandons bid to scrap Libyan lawsuit
Published 20/08/2014 | 02:30
Goldman Sachs has abandoned its bid to get a UK court to throw out a $1bn lawsuit by the Libyan Investment Authority (LIA). The lawsuit alleged that the New York-based bank made about $350m (€750m) selling (LIA) investments that turned out to be worthless.
In April Goldman Sachs had asked a London judge to decide that the case didn't have a realistic chance of success and to issue a so-called summary judgment dismissing the suit, the sovereign wealth fund said in a statement. The bank has withdrawn the request, LIA said.
The "application was misconceived and issued purely for tactical reasons, including a desire to delay the determination of the LIA's claims," the fund said.
Libya's sovereign wealth fund is one of dozens of small companies and government agencies that have sued lenders over deals the investors claim were too complicated to understand. It also sued Societe Generale in a $1.5bn lawsuit, saying that the French bank paid about $58m to a friend of the Qaddafi family to secure investments.
"We continue to believe this case is entirely without merit and intend to contest it vigorously as it moves through the legal process," Goldman Sachs said in a statement.
A London court hearing is scheduled to take place in early October, the fund said.