Goldman feels heat in suit vs. Dollar Thrifty
New York Post
Goldman Sachs' mantra that "clients come first" is under fire again.
The investment bank, which is still trying to burnish its reputation after settling fraud charges brought this year by the Securities and Exchange Commission, stands accused in a lawsuit of using information it gleaned from one client to win business from another.
The suit claims Goldman took "non-public information" that it got from advising Dollar Thrifty Automotive Group on one deal and used it to pitch rival Hertz Rental Global Holdings in a bid to win a lucrative investment banking assignment.
Shareholders of Dollar Thrifty, who are suing to block the rental-car company's $1.2 billion takeover by Hertz so that rival Avis can negotiate a better deal, are questioning the bank's actions in an attempt to undercut the merits of the deal, although Goldman is not a party to the lawsuit.
