Goldman Sachs countersues client over October stock rout

GOLDMAN Sachs Group and Lynne Ng Su Ling, an independent director at LionGold Corp, traded lawsuits in London over payment demands after shares owned by Ms Ng and held by the bank as debt collateral plunged in an October stock rout.

Two Goldman Sachs units are seeking US$17.5 million from Ms Ng, money the bank says she owes after it sold her shares, according to a countersuit by the bank filed on March 24 and made available over the weekend. In a complaint served on Goldman Sachs in February, Ms Ng says the bank failed to use reasonable efforts to get the best price available when it sold her stock.

Ms Ng's portfolio with Goldman Sachs totalled S$113 million including shares in Asiasons Capital Ltd, Blumont Group Ltd. 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 US$6.9 billion off the market value of LionGold, Blumont Group and Asiasons Capital.