Geradons, S.L., Salvador Porte, Eduardo Kawas v. Goldman Sachs & Co.
Published: Jan. 5, 2008 | Result Date: Nov. 15, 2007 | Filing Date: Jan. 1, 1900 |Case number: 05-01724 Arbitration – For respondent Goldman, Sachs & Co.
Facts
On April 4, 2005, claimants Geradons S.L., Salvador Porte and Eduardo Kawas filed a statement of claim with the arbitration facilities of the National Association of Securities Dealers (now known as the Financial Industry Regulatory Authority or FINRA) in Boca Raton, Florida, alleging claims against Goldman, Sachs & Co. for negligence, negligent supervision, breach of fiduciary duty and violation of Chapter 517 of the Florida Securities and Investor Protection Act.
Contentions
CLAIMANTS' CONTENTIONS:
Claimants alleged that: (1) Goldman Sachs failed complete a loan to claimants in a timely manner, using claimants' restricted shares of Starmedia, Inc. as collateral; (2) Goldman Sachs failed to "collar" claimants' restricted Starmedia stock; and, (3) Goldman Sachs failed to deliver claimants' restricted Starmedia stock to another brokerage house in a timely manner in January 2000.
RESPONDENTS' CONTENTIONS:
Goldman Sachs denied claimants' allegations in their entirety and asserted various affirmative defenses, including that each of claimants' claims was barred by the applicable statutes of limitations.
Damages
Claimants initially sought compensatory damages "in excess of $5 million," plus an unspecified amount of punitive damages, disgorgement of any and all improperly acquired fees, costs and attorneys' fees associated with the arbitration proceedings, and any further relief deemed just and proper by the arbitration panel. Claimants increased their prayer for compensatory damages to over $12 million during the evidentiary hearing held on Nov. 5-8, 2007 in Boca Raton, Florida. At the conclusion of claimants' case-in-chief, Goldman Sachs requested that claimants' statement of claim be dismissed in its entirety on the grounds that claimants' failed to meet their burden of proof for each cause of action and that each of claimants' claims was time-barred by the applicable statutes of limitations.
Result
The FINRA arbitration panel found in favor of Goldman Sachs, denying claimants' claims in their entirety.
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