Goldman Sachs wins Libya High Court battle

The High Court ruling in London on October 14 follows a two-month trial earlier this year in which the Libyan Investment Authority, or LIA, alleged that Goldman executives exerted “undue influence” over its officials, who didn’t understand the trades.

Goldman denied wrongdoing and said the Libyan fund understood the risks.

Judge Vivien Rose said: “It was not Goldman Sachs’s fault.”

Goldman arranged nine equity derivative trades for the LIA in 2008 that expired worthless in 2011. Goldman earned about $ 222 million from the trades, according to the fund. Goldman disputes the amount of profit it made.

The LIA was created during the rule of dictator Moammar Gadhafi in 2006, after the US removed Libya from a list of state sponsors of terrorism. One Goldman executive testified during the trial that fund employees were too afraid to take responsibility for the investments because they lived in a country run by a dictator and feared for their lives.

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