Activist Investor Opposes Goldman Compensation Suit Deal

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Sean Griffith was featured in a Law 360 article about his objection to a proposed settlement in a lawsuit against Goldman Sachs.

An activist investor objected Wednesday to a proposed settlement of a Delaware shareholder suit over excessive director compensation, saying the deal provides no value to the company or stockholders and is part of a pattern of litigation by a serial plaintiff.

 

Goldman Sachs shareholder and Fordham University School of Law Professor Sean Griffith said the settlement calls for the payment of more than $500,000 in legal fees for plaintiff Shiva Stein, but doesn’t include anything for the shareholders of Goldman Sachs despite Stein’s assertion that her claims were worth millions of dollars.

 

“Although plaintiff filed a complaint containing allegations that defendants inflicted millions of dollars in harm on Goldman through their past conduct, in the face of fully-briefed motions to dismiss, plaintiff consented to a settlement that contains only prospective relief concerning conduct she never challenged in this action,” the objection said.

 

Griffith described the settlement as containing a handful of trivial disclosures and an agreement from the defendants to continue already-existing governance practices.

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