LONDON Aug 19 Goldman Sachs and Libya's
sovereign wealth fund are set to meet in a London court over
claims the Wall Street bank exploited a position of trust by
encouraging the fund to invest more than $1 billion in trades
that ended up worthless.
Goldman had filed a summary judgment application - a request
to decide a claim without going to trial - in the case brought
by the Libyan Investment Authority (LIA) in January, but has
recently withdrawn it, the LIA said in a statement.
"Following the serving of the LIA's reply evidence, Goldman
Sachs has withdrawn its summary judgment application," the LIA
A case management hearing has now been scheduled for early
Goldman did not immediately respond to requests for comment.
A spokesperson previously described the claims as without merit
and said the bank would defend them vigorously.
The LIA brought a lawsuit to London's High Court over a
series of equity trades executed between January and April 2008
that expired as worthless in 2011.
The fund, which became a Goldman client in 2007, alleges
that the bank deliberately exploited the relationship of trust
and confidence it had established with LIA staff, causing the
fund to enter into the disputed trades.
The LIA estimates that Goldman made substantial profit of
around $350 million on the trades, while it was left with
(Reporting by Clare Hutchison, editing by David Evans)