SAN FRANCISCO, Calif. — The founders of Marvell Technology Group (Nasdaq: MRVL), Sehat Sutardja and Weili Dai, filed a lawsuit in San Francisco Superior Court against Goldman Sachs (NYSE: GS) and two account executives, alleging Goldman Sachs manipulated the 2008 financial crisis to defraud the two Silicon Valley executives of more than $100 million.
Mr. Sutardja and Ms. Dai founded Marvell Technology Group, a worldwide semiconductor company in Santa Clara in 1995. Goldman Sachs managed the IPO for Marvell and put the two executives into their Private Wealth Management Group. It is alleged that once the two executives’ personal wealth was under the financial management of Goldman Sachs, the firm abused the two executives’ trust, manipulated their relationship, and ultimately defrauded them of more than $100 million.
The suit alleges Goldman Sachs issued a margin call for the two executives’ investment accounts, which were managed by Goldman Sachs Private Wealth Management Group, under false pretenses, wrongly claiming an SEC Rule mandated the margin call when no such rule existed. It is alleged the margin call was a result of Goldman Sachs’ need to repair its balance sheet and insulate itself from the extreme market turmoil of the financial crisis in 2008. Further, the complaint alleges that Goldman Sachs’ wholly improper margin call reflects the Goldman Sachs’ willingness to put its own interests ahead of its clients.
FOR FULL COMPLAINT, SEE www.cpmlegal.com.