New Jersey Deal Costs Goldman Sachs $26.5 Million
Goldman Sachs & Company is set to buy back $25.5 million worth of auction rate securities (ARS) from investors in New Jersey and also pay a $1 million fine to the state, according to a news article in The Star Ledger. This settlement caps an investigation by the New Jersey regulators alleging that Goldman marketed the auction rate securities (ARS) as being very safe, highly liquid cash like equivalents with better returns than certificates of deposit, without warning investors of the known risks involved leading up to the time the ARS market froze in February 2008.
The New Jersey Division of Consumer Affairs has cut $2.8 billion worth of deals with financial firms relating to the marketing and sale of ARS, the largest of which was a $1.5 billion settlement with UBS back in February 2011.
If you have suffered losses from investing in auction rate securities, please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.