Bloomberg News

Goldman Sachs to Seek Early Dismissal of Libya Wealth Fund Suit

April 17, 2014

Goldman Sachs Group Inc. (GS:US) will seek to have a $1 billion lawsuit by the Libyan Investment Authority thrown out before trial.

The bank will ask a London judge to decide whether the case has a realistic chance of success and issue a so-called summary judgment, according to court documents released this week. Libya’s sovereign wealth fund says Goldman made about $350 million selling investments that turned out to be worthless.

The LIA said in a statement it “considers this application to be misconceived and looks forward to full and proper determination of all issues by the English court.”

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 SA (GLE) in a $1.5 billion lawsuit, saying that the French bank paid about $58 million to a friend of the Qaddafi family to secure investments.

Fiona Laffan, a spokeswoman for New York-based Goldman Sachs, declined to comment on the case.

The LIA must convince a judge that its claim has some chance of success to defeat the summary judgment application. The case has been put on hold until the court decides on whether it can continue.

The case is The Libyan Investment Authority v. Goldman Sachs International, case no. 14-310, High Court of Justice, Chancery Division.

To contact the reporter on this story: Kit Chellel in London at cchellel@bloomberg.net

To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net Stephen Farr


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Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $175.4 USD
    • -0.86
    • -0.49%
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