...Based on the firm’s response to the complaint, its motion for summary judgment and testimony of the people it employed, most of that defense falls under one of three rubrics: The Bakers do not have standing to sue. Goldman had no obligation to do a financial analysis of L.& H. And Goldman’s bankers actually performed quite well.From the New York Times:
THE business deal from hell began to crumble even before the Champagne corks were popped.
The deal, the $580 million sale of a highflying technology company, Dragon Systems, had just been approved by its board and congratulations were being exchanged. But even then, at that moment of celebration, there was a sense that something was amiss.The chief executive of Dragon had received a congratulatory bottle from the investment bankers representing the acquiring company, a Belgian competitor called Lernout & Hauspie. But he hadn’t heard from Dragon’s own bankers at Goldman Sachs.“I still have not received anything from Goldman,” the executive wrote in an e-mail to the other bank. “Do they know something I should know?...MORE
HT to Improbable Research who point out that Goldman:
was a Co-winner of the 2010 Ig Nobel Prize in economics along with AIG, Lehman Brothers, Bear Stearns, Merrill Lynch, and Magnetar "for creating and promoting new ways to invest money — ways that maximize financial gain and minimize financial risk for the world economy, or for a portion thereof."
And that L&H had been recognized for their pioneering work:
The 2002 Ig Nobel Prize in economics was awarded to the executives, corporate directors, and auditors of Enron, Lernaut & Hauspie, Adelphia, Bank of Commerce and Credit International, Cendant, CMS Energy, Duke Energy, Dynegy, Gazprom, Global Crossing, HIH Insurance, Informix, Kmart, Maxwell Communications, McKessonHBOC, Merrill Lynch, Merck, Peregrine Systems, Qwest Communications, Reliant Resources, Rent-Way, Rite Aid, Sunbeam, Tyco, Waste Management, WorldCom, Xerox, and Arthur Andersen, for adapting the mathematical concept of imaginary numbersfor use in the business world.