Sunday, August 5, 2012

Goldman Investor’s Suit Against Gupta Nixed




From Businessweek: A Goldman Sachs investor’s lawsuit seeking disgorgement of insider-trading profit from former board member Rajat Gupta was dismissed by a Manhattan federal judge.  U.S. District Judge Jed Rakoff said in an opinion filed today that the investor, James Mercer, failed to adequately allege that Gupta received quid-pro-quo payments for tips he provided to Galleon Group LLC co-founder Raj Rajaratnam.

Gupta, who was also a managing partner of McKinsey Co. and a director at Procter & Gamble Co. (PG) (PG), was convicted in June of securities fraud and conspiracy for tipping Rajaratnam, who is serving an 11-year prison term for crimes related to insider trading.  However,  Mercer’s assumption that Gupta received payments “is far too speculative to survive dismissal,” Judge Rakoff wrote ….

Wait...wait...there's more at http://www.businessweek.com/news/2012-07-30/goldman-sachs-investor-s-suit-against-gupta-dismissed

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