(Author: Libyan Gazette Editorial Staff)
The ruling for the lawsuit that the Libyan Investment Authority (LIA) launched against US investment bank Goldman Sachs for allegedly setting up bad deals for the LIA will be announced on Friday.
The LIA is suing Goldman Sachs for $1 billion and filed the lawsuit with the UK’s High Court.
During the trials, the LIA brought forth evidence which suggested foul play on the part of Goldman. The LIA accused the American investment bank of taking advantage of the LIA’s lack of knowledge in finance.
According to the LIA, Goldman employees noticed the LIA’s deficiency in understanding basic finance terminology and used that against the LIA by encouraging the Libyan state fund to invest in bad trades.
The High Court also heard of “deeply offensive” emails from Driss Ben Brahim, a Goldman banker who called the LIA “very unsophisticated”, suggesting anyone could “rape” them. Another Goldman employee allegedly described the bank’s presentation to the LIA team as being a pitch “to someone who lives in the middle of the desert with his camels”.
Moreover, the LIA accused Goldman employees of taking LIA officials or their family members on luxury trips to ease their way into sealing a deal. The LIA said it lost $1.2 billion from the failed investments that were suggested by Goldman.
Goldman has refused to take responsibility for the LIA’s loss and said that the LIA is simply experiencing “buyer’s remorse” after the investments “turned out badly” as a result of the 2008 economic downturn.
Goldman also argued that the LIA had only brought forth the lawsuit after it was quite clear that the investments were not going well.
The ruling will be announced during a sensitive time for Goldman as it faces scrutiny for its dealings with Malaysian government’s investment fund, known as the 1MDB, that has also been under the spotlight for scandalous activity. Goldman is also facing criticism for being involved with a British retail chain, BHS, which fell apart and lost 11,000 jobs.
