This case was last updated from PACER on 10/13/2021 at 06:46:12 (UTC).

Tan v. Goldman Sachs Group Inc. et al

Case Summary

On October 12, 2021, Chew King Tan (“Tan” or “Plaintiff”), individually and on behalf of all others similarly situated, represented by Thomas Livezey Laughlin, IV of Scott+Scott, L.L.P. , filed a civil action against Goldman Sachs Group Inc. (“Goldman Sachs”) and Morgan Stanley (“Morgan Stanley”) (collectively, “Defendants”), seeking declaratory relief, damages along with pre-and-post judgment interest, disgorgement, costs, and fees for the alleged unlawful use of material non-public information by Defendants by selling shares of the Company to avoid losses. This case was filed in the U.S. District Court in the Southern District of New York. 

 

In the complaint, Plaintiff alleged that, “This is a securities class action arising from the unlawful use of material non-public information by Defendants Goldman Sachs and Morgan Stanley, who collectively avoided billions in losses by selling shares of Vipshop Holdings Ltd. (“Vipshop” or the “Company”), a leading online discount retailer for brands in China, to Plaintiff and other unsuspecting and unwitting public shareholders, after confidentially learning that Archegos Capital Management (“Archegos”), a family office with $10 billion under management, failed (or was likely to fail) to meet a margin call, requiring it to fully liquidate its position in the Company.”

 

Plaintiff further alleged that, “Defendants sold a large amount of Vipshop shares during the week of March 22, 2021, while in possession of material, non-public information. According to subsequent media reports, Defendants unloaded large block trades consisting of shares of Archegos’ doomed bets, including billions worth of Vipshop securities, late Thursday, March 25, 2021, before the Archegos story reached the public, sending Vipshop’s stock into a complete Tailspin.”

 

Plaintiff also alleged that, “Defendants knew, or were reckless in not knowing, that they were prohibited from trading based on this confidential market-moving information, but traded anyway, disposing to Plaintiff and other members of the Class their Vipshop stock before the news about Archegos was announced and Vipshop’s shares plummeted.” 

 

Plaintiff lists out three claims for relief. The first claim is for violations of §10(b) of the Exchange Act and Rule 10b-5 promulgated, thereunder. The second claim is for violations of §20A of the Exchange Act. The third claim is for violations of §20(a) of the Exchange Act. Plaintiff also alleged that, Defendants knew, recklessly disregarded, or should have known that they had received material, adverse, non-public information, and that they owed a fiduciary duty, or obligation arising from a similar relationship of trust and confidence, to Archegos to keep this information confidential. 

 

In the prayer for relief, Plaintiff requested the court to declare that the instant action may be maintained as a class action under Fed. R. Civ. P. 23 and require Defendants to pay damages sustained by Plaintiff and the Class along with pre-judgment and post-judgment interest. Plaintiff further requested the court require Defendants to pay reasonable attorneys’ fees, expert witness fees, other costs, and disbursements in addition to an order for accounting and disgorgement of Defendants’ unjust profits, and such other and further relief as the court may deem just and proper.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-08413

  • Filing Date:

    10/12/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

 

Party Details

Plaintiff

Chew King Tan

Defendants

Goldman Sachs Group Inc.

Morgan Stanley

Attorney/Law Firm Details

Plaintiff Attorney

Thomas Livezey Laughlin, IV

Attorney at Scott + Scott, L.L.P.( NYC)

230 Park Avenue, 17Th Floor

New York, NY 10169

 

Court Documents

1 #1

Main Document

1 #1

Exhibit Certification and Schedule A

1 #2

Exhibit Loss Chart

#2

#3

 

Docket Entries

  • 10/12/2021
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  • Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to Goldman Sachs Group Inc., Morgan Stanley, re: #1 Complaint,. Document filed by Chew King Tan..(Laughlin, Thomas) (Entered: 10/12/2021)

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  • 10/12/2021
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  • Docket(#2) CIVIL COVER SHEET filed..(Laughlin, Thomas) (Entered: 10/12/2021)

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  • 10/12/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against Goldman Sachs Group Inc., Morgan Stanley. (Filing Fee $ 402.00, Receipt Number ANYSDC-25183897)Document filed by Chew King Tan. (Attachments: #1 Exhibit Certification and Schedule A, #2 Exhibit Loss Chart).(Laughlin, Thomas) (Entered: 10/12/2021)

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