Thursday, May 13, 2010

Australian Class Action Planned Over Goldman Sachs JBWere Contracts $GS

DJ Australian Class Action Planned Over Goldman Sachs JBWere Contracts

MELBOURNE (Dow Jones)--Australian law firm Slater & Gordon said Thursday it plans to launch a class action against Goldman Sachs JBWere Capital Markets Ltd. alleging misleading conduct over the sale of financial instruments in 2007.  The class action specialist said in a statement that the case centered on "Buy Below the Market" option contracts sold by
GSJBW.  Clients were already claiming losses of A$15 million, Slater & Gordon said, adding that lawsuit funder Litigation Lending Services is backing the case.  Slater & Gordon lawyer Van Moulis said clients claimed they were sold the contracts as a protection against a sudden downturn in the share market.  "But when the crunch came clients were locked into buying shares in blue chip companies at prices well above their market value," he said.  Moulis said clients alleged that GSJBW failed to explain that if the market moved against them they would be required to buy the shares at above the market or settle the difference in cash.

A spokeswoman for GSJBW declined to comment.
 -By Neil Sands, Dow Jones Newswires; 61-3-9292-2095;
 (END) Dow Jones Newswires May 13, 2010 02:19 ET (06:19 GMT)

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