Goldman Sachs Group Inc cleared of all charges in doomed Dragon sale
Lernout & Hauspie and made the remaining stock held by the Bakers worthless. In fact, Goldman said Dragon rushed into the sale and brushed aside advice that outside accountants be hired to further examine Lernout & Hauspie's books.
The Bakers owned 51 percent of the company, but only were able to sell a few million dollars worth of L&H stock before the collapse.
In counter claims brought by Goldman, the jury found that Janet Baker had made negligent misrepresentations to Paul Bamberg and Robert Roth, Dragon employees who held 5.54 percent and 2.75 percent, respectively, of the company's stock. The jury said Baker caused damages, but no figure was given in the verdict.
The jury also said Goldman proved that Janet Baker breached her fiduciary duty to Bamberg and Roth. The jury said Jim Baker breached his fiduciary duty to Bamberg, but not to Roth, according to the verdict.
During the trial, jurors heard testimony, largely by video, from a lineup of Goldman Sachs executives, including Gene "Tiger" Sykes, who today runs the bank's mergers and acquisition business and denied any role in the Dragon deal.
Dragon's attorneys said the bank had assigned "D-team" investment bankers to advise Dragon, which they argued the bank made because the software company was one of its smaller clients.
"It is regrettable that the plaintiffs went to such lengths to unfairly and publicly attack the reputations of the Goldman Sachs bankers who advised Dragon Systems," said Goldman's Galvin on Wednesday. "Those bankers have our full support."
Alan Cotler, a lawyer for
Be the first to comment.
