Goldman not negligent in arranging Dragon sale: jury
January 24, 2013 8:42 AM EST
A jury said on Wednesday that Goldman Sachs Group Inc
The jury said that Goldman, the New York investment bank, did not make negligent misrepresentations during the sale process, according to the verdict announced in the civil case in U.S. District Court in Boston.
Dragon founders Jim and Janet Baker, pioneers in the field of speech recognition software, accused Goldman investment bankers of being negligent in the 2000 sale of their company to Belgium-based Lernout & Hauspie. The Bakers and two early Dragon employees sought several hundred million dollars in damages.
But lawyers for Goldman said it wasn't the investment bank's job to sniff out the accounting fraud that ultimately doomed Lernout & Hauspie and made the remaining stock held by the Bakers worthless. 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.
(Reporting by Tim McLaughlin; Editing by Phil Berlowitz)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Revealed: Vladimir Putin Plotting To Invade Europe – Report
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- Australian and Other Select Earth Locations Hold Proofs Life Once Existed On Mars – Report
- Samsung Galaxy S6 Will Shatter Records with 64-Bit Snapdragon, 21MP Camera and Bendable Design
- Lowe's Black Friday 2014 Deals Include Up To 40% Off On Select Major Appliances, Plus Free Shipping For Orders Of $19 Or More
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast
- Walmart Canada Black Friday 2014 Ad For Nov. 28, 2014 Up To Dec. 1, 2014 Includes Savings On The iPad Mini 16GB And The Beats Solo HD Drenched Headphones