SETTLEMENT: A team of SLS attorneys led by Rick Lombardo and Kathy Woods reach settlement with Goldman Sachs in excess of $100,000,000.00.
Case: General American Mutual Holding Company v. Goldman Sachs
Circuit Court of St. Louis City, Missouri
Case No. 22042-7300-01
Description: In the Fall of 1998, General American Mutual Holding Company was the largest life insurance company domiciled in the State of Missouri. At that time, Goldman Sachs, who had been hired to advise General American and its Board regarding strategic alternatives, and to conduct an in-depth analysis of all of its business lines, valued General American at around $2.2 billion. Just over eight months later General American suddenly collapsed and was sold to MetLife for $1.2 billion, a loss of $1 billion in policyholder value.
When General American was placed into receivership by the Missouri Department of Insurance, SLS attorney Rick Lombardo was hired to look into claims which might be made on behalf of General American policyholders to reduce their losses.
During the course of his investigation, SLS attorney Lombardo determined that Goldman Sachs had breached its fiduciary duty to General American by, among other things, providing bad advice, making material misrepresentations and having conflicts of interest that contributed to cause the loss suffered by General American’s policyholders.
In 2006, SLS filed suit against Goldman Sachs on behalf of General American’s policyholders.
Result: After a two day mediation, Goldman Sachs agreed to settle the claims with General American policyholders for in excess of $100,000,000.00. Shortly thereafter, the settlement was approved by the Circuit Court for Cole County, Missouri. Combined with other lawsuits against Morgan Stanley, KPMG and the officers and directors of General American, the total recovery for the policyholders of General American now exceeds $242 million. SLS is currently pursuing another suit on behalf of General American and its policyholders relating to the collapse of General American against the New York based law firm of Dewey & LeBoeuf.