Tuesday, April 12, 2011

Goldman (GS) Sued by Marvell (MRVL) Founders

Marvell (NASDAQ:MRVL) Chairman and CEO Weili Dai and General Manager of Communications and Consumer Business Sehat Sutardja, two of the co-founders of the company, have sued Goldman Sachs (NYSE:GS) for allegedly forcing them to sell shares in the company when they didn't have to.

According to the complaint, "Goldman forced its clients to unnecessarily liquidate their holdings through forced margin calls, only to repurchase these same shareholdings for accounts owned by Goldman and its related hedge funds."

The married couple used their shares in Marvell as margin to acquire shares in Nvidia (NASDAQ:NVDA), which Goldman then said they had to sell, claiming it was necessary due to a Securities and Exchange Commission rule governing what stocks can be used as margin, according to the lawsuit.

Marvell closed Monday at $16.05, falling $0.34, or 2.07 percent. Goldman Sachs closed at $161.47, gaining $0.51, or 0.32 percent.

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