Goldman Sachs Analysts Influenced by Banking Interests

In violation of NASD and NYSE regulations, analysts at Goldman Sachs were encouraged to participate in investment banking activities and were compensated with raises and bonuses. The SEC's complaint against Goldman Sachs includes reports that certain analysts were "known to be swayed by banking to support certain names."

During meetings with potential investment banking clients, known as "pitches," firm representatives implicitly suggested that Goldman Sachs would provide favorable research coverage after the investment banking transaction.

One analyst had doubts about ratings on AT&T's stock, but wrote in an email that "investment banking considerations prevented [him] from making a change" in his recommendations.

Read the full SEC complaint against Goldman Sachs.

If you have purchased shares in any of the following stocks from Goldman Sachs, you may have a potential stock fraud claim. Contact the Consumer Justice Group immediately for an evaluation of your case.

AT&T
Crosswave Communications
Crown Castle
Exodus
GeneProt
Global Crossing
Loudcloud
StorageNetworks
WebEx
Willis
Winstar Communications
WorldCom
360Networks

The Investment & Stock Fraud News is a service of the Consumer Justice Group.