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June 11 — An investor has filed a derivative lawsuit accusing directors of The Goldman Sachs Group Inc. of engaging in “illegal self-dealing” by paying themselves more than “what could be considered reasonable or fair”.
In a June 9 complaint in the Delaware Chancery Court, the stockholder alleges that directors on Goldman's compensation committee have taken advantage of their “unfettered ability” to set their own compensation. The plaintiff raises claims for breaches of fiduciary duty and unjust enrichment.
The complaint alleges that since 2012 Goldman has paid its non-executive directors almost $240,000 more on average than companies in a self-selected peer group.
The plaintiff further asserts that Goldman has overpaid its not non-executive directors “millions of dollars more than they deserve” during the last three years and that its “new stated compensation practice is manifestly unfair.”
Accordingly, the derivative lawsuit seeks to “recoup the unfair excessive compensation” from the defendant directors and to “impose meaningful restrictions” on Goldman's board's ability to compensate itself.
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The complaint is available at http://www.bloomberglaw.com/public/document/Binning_Jeran_et_al_vs_Adebayo_O_Ogunlesi_et_al_Docket_No_11118_D.
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