Judge nixes settlement in Goldman Sachs shareholder suit
DOVER, Del. (AP) — A Delaware judge has refused to approve a proposed settlement in a shareholder lawsuit alleging that Goldman Sachs directors excessively compensated themselves over several years and improperly issued stock-based incentive awards.
The settlement would have resolved direct claims belonging to the shareholder while preventing derivative claims filed on behalf of the company itself from ever being litigated in the future.
In the settlement, Goldman Sachs promised to make certain disclosures, and to continue current director compensation practices for at least three years and disclose them in proxy statements. It also agreed to pay $575,000 in attorney fees and expenses.
The judge said Tuesday that, in return for release of monetary claims against them, the director defendants gave up nothing and essentially agreed just to abide by their mandated fiduciary duties.