Barry I. Slotnick, Shareholder in the firm’s Litigation Section, was quoted in an article in The Wall Street Journal about Fabrice Tourre, an employee at Goldman Sachs Group Inc. involved in an SEC case of misleading investors. Goldman and Tourre are accused of a collateralized-debt obligation (CDO) that caused big losses for investors and big gains for hedge-fund firm Paulson & Co.
While Goldman has settled, Tourre has continued to fight to clear his name. E-mails disclosing his awareness of the impending crisis have been a central part of the regulator’s case against him. In the article, Slotnick predicts the court would permit both sides to review all of the evidence, even if it means delaying the trial.
"They have to reopen discovery," says Slotnick. "And if not, there will be an appeal."
The evidence would include a phone call made in January 2007 between a Goldman salesperson and an executive at ACA Financial Guaranty Corp. During the call, the salesperson implied that Paulson would bet that the CDO would increase in value, while the SEC claims that Tourre knew Paulson would actually bet that it would fall in value.
Read the full article – “From 'Fabulous Fab' to Grad Student” (The Wall Street Journal, April 25, 2013)