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    You are at:Home»Faculty»Goldman Settlement of Investor’s Board-Pay Claims Rejected

    Goldman Settlement of Investor’s Board-Pay Claims Rejected

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    By Newsroom on October 23, 2018 Faculty, In the News

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

    Shiva Stein, a Goldman investor, sued the bank last year challenging a stock-incentive plan for managers and directors, saying it wasn’t properly outlined to shareholders. Besides hiring a consultant to review non-employee directors’ pay, the bank offered to make additional disclosures in its 2018 proxy, including that those board members’ compensation is “the highest among’’ their U.S. peers.

    “We are disappointed that the settlement of these claims was not approved, but they remain subject to our pending motion to dismiss,” Michael DuVally, a Goldman spokesman, said in an email.
    …
    After Fordham University law professor Sean Griffith objected to the settlement, Glasscock’s analysis found Stein had “potentially-meritorious monetary causes of action’’ that were being extinguished without proper benefits in exchange. Griffith is one of a number of law professors who have called into question the value of disclosure settlements and routinely objects to such accords.

     

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