Goldman, Client Trade Lawsuits Over Singapore Stock Rout
Goldman Sachs Group Inc. (GS) and Lynne Ng Su Ling, an independent director at LionGold Corp., traded lawsuits in London over payment demands after shares owned by Ng and held by the bank as debt collateral plunged in an October stock rout.
Two Goldman Sachs units are seeking $17.5 million from Ng, money the bank says she owes after it sold her shares, according to a countersuit by the bank filed March 24 and made available over the weekend. In a complaint served on Goldman Sachs in February, Ng says the bank failed to use reasonable efforts to get the best price available when it sold her stock.
Ng’s portfolio with Goldman Sachs totaled S$113 million ($90 million) including shares in Asiasons Capital Ltd. (ACAP), Blumont Group Ltd. (BLUM) and LionGold, as of Sept. 30, according to court papers. She is the third client Goldman has sued over unpaid debts related to a stock crash over three days in October that wiped $6.9 billion off the market value of LionGold, Blumont Group Ltd. and Asiasons Capital Ltd.
The sudden declines prompted the city’s central bank and white-collar crime agency to probe suspected stock-trading irregularities around the tumble. Banks and brokers are seeking to recover at least $230 million from the stock rout.
Ng, who resigned as a Blumont independent director in November, didn’t reply to two e-mails or return two phone calls to her office at law firm Damodara Hazra LLP seeking comment.
Edward Naylor, a Hong Kong-based spokesman at Goldman Sachs, declined to comment.
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