A federal jury on Wednesday gave Goldman Sachs Group Inc a sweeping legal victory in the $580 million sale of Dragon Systems Inc to Lernout & Hauspie, saying the Wall Street bank was not negligent in arranging a deal that ultimately collapsed 13 years ago.
The jury cleared Goldman of claims of negligence, intentional misrepresentation and breach of fiduciary duty, and others, in the civil case, according to the verdict announced in U.S. District Court in Boston.
Lawyers for Goldman said it was not the investment bank's job to sniff out the accounting fraud that ultimately doomed the deal Goldman said Dragon brushed aside advice to hire outside accountants to examine Lernout & Hauspie's books.Dragon founders Jim and Janet Baker, pioneers in the field of speech recognition software, accused Goldman investment bankers of being negligent in the 2000 sale of their company to Belgium-based Lernout & Hauspie, which collapsed in a massive accounting fraud. The Bakers and two early Dragon
This article is only available in full to Compliance Complete
UK and Europe North America Subscribers who are logged in.
Please log in to see if you can view this content.