Goldman Sachs Group Inc. & Morgan Stanley (ViacomCBS Inc. shares)

  • Active

Investigation
10/29/2021

Initial Lawsuit
10/29/2021

Lawsuit Progression
04/12/2022

Investigation

  • Continous Holding
    March 22, 2021 to March 29, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding Goldman Sachs’ and Morgan Stanley’s sales of a large amount of ViacomCBS shares during the week of March 22, 2021, while, allegedly, in possession of material, non-public information.

Main Event

Selling or Insider Selling?

04/06/2021

News Outlets

CNBC reports that Morgan Stanley sold about $5 billion of shares in connection with Archegos’ bets to a small group of hedge funds on March 25, 2021 while failing to disclose material information.

“Morgan Stanley sold about $5 billion in shares from Archegos’ doomed bets on U.S. media and Chinese tech names to a small group of hedge funds late Thursday, March 25, according to the people, who requested anonymity to speak frankly about the transaction. . . .

But the investment bank had information it didn’t share with the stock buyers: The basket of shares it was selling, comprised of eight or so names including Baidu and Tencent Music, was merely the opening salvo of an unprecedented wave of tens of billions of dollars in sales by Morgan Stanley and other investment banks starting the very next day. . . .

That means that at least some bankers at Morgan Stanley knew the extent of the selling that was likely and that Hwang’s firm [Archegos] was unlikely to be saved, these people contend. That knowledge helped Morgan Stanley and rival Goldman Sachs avoid losses because the firms quickly disposed of shares tied to Archegos.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$44.35 $42.9 $1.45 3.38%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 10/29/2021

Plaintiff brings this securities class action lawsuit on behalf of all investors who purchased or otherwise acquired ViacomCBS Inc. shares contemporaneously with Goldman Sachs’ and Morgan Stanley’s unlawful trades from March 22, 2021 through and including March 29, 2021.

  • Filing Date
    10/29/2021
  • Class Period
    03/22/2021 to 03/29/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Hedin Hall LLP
    The Schall Law Firm
    Scott+Scott Attorneys at Law LLP
  • Case Title
    Ulanch v. Goldman Sachs Group, Inc. et al
  • Docket Number
    1:21-cv-08897
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Goldman Sachs and Morgan Stanley sold a large mount of ViacomCBS shares during the class period while in possession of material, non-public information about Archegos, and its need to fully liquidate its position in ViacomCBS because of margin call pressure;
(ii) as a result of these sales, Goldman Sachs and Morgan Stanley avoided billions in losses combined.

Defendants

  • Company
    Goldman Sachs Group Inc.
  • Company
    Morgan Stanley

Lawsuit progression

  • Docket Number
    1:21-cv-08897
  • Court
    New York Southern District Court

Lead Counsel

04/12/2022

The court issued an order appointing the lead plaintiff and lead counsel.

[stockdio-historical-chart symbol=”VIAC” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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