Goldman Sachs compensates LIA for legal costs

The Libyan Investment Authority (LIA) is to be compensated for legal costs amounting to GBP 200,000 by Goldman Sachs as part of a lawsuit filed by LIA. LIA filed the case in January in London’s High Court and alleged that Goldman Sachs exploited a position of trust by encouraging the fund to invest over USD 1 billion in a series of equity derivatives trades that transpired as worthless in 2011.

Goldman Sachs intends to aggressively contest the case and claims the accusations as one based on no merit. The Wall Street Investment bank initially filed a summary judgement application requesting to settle the claim without going to trail in April, but this was later withdrawn.

At a hearing this month, the two parties discussed the costs incurred in relation to the abandoned application and other affairs. LIA originally sought USD 1 million on costs with half of the amount to be paid in 14 days. An interim payment of GBP 200,000 is to be paid within two weeks. Verdict on payments related to the summary judgement application is due to be decided later and the lawsuit is expected to go to trial in 2016.