Judge rejects Libya fund's claim that Goldman Sachs duped it
LONDON – Britain's High Court has rejected a $1 billion lawsuit against Goldman Sachs by Libya's sovereign wealth fund, which accused the investment bank of duping it into risky deals.
The Libyan Investment Authority alleged that Goldman Sachs made hefty profits by taking advantage of the fund's inexperience to get it to make high-risk derivative trades. Its lawyers said Goldman Sachs made more than $200 million in four months in 2008, while the authority lost the whole of a $1.2 billion investment during the 2008 financial crisis.
Goldman Sachs denied wrongdoing.
On Friday, judge Vivien Rose said she dismissed the claim that the disputed trades were the result of "undue influence" by Goldman Sachs.
The $67 billion fund was set up by late Libyan leader Moammar Gadhafi, who was deposed in 2011.