Jessy Edwards  |  August 10, 2021

Category: Legal News

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

dell class v stock, dell lawsuit, goldman sachs lawsuit
(Photo Credit: Ken Wolter/Shutterstock)

Dell/Goldman Sachs Stock Lawsuit Overview:

  • Who: Investors are asking Goldman Sachs to be added as an additional defendant to a class action lawsuit filed against Dell Technologies Inc.
  • Why: The plaintiffs allege Goldman Sachs aided and abetted Dell in getting investors to give up a special “Class V’ type of Dell stock for common stock shares, resulting in the investors being collectively shortchanged by billions of dollars.
  • Where: The lawsuit was filed in state court in Delaware.

Goldman Sachs should be held partly responsible for a 2018 swap of special Dell stock that saw shareholders shortchanged by billions, a new class action lawsuit filing alleges.

In a motion filed last Friday, investors who once held a special “Class V” type of Dell stock asked a Delaware Chancery Court judge to approve an amended version of their class action complaint against Dell Technologies Inc., adding Goldman Sachs & Co. LLC as an additional defendant. 

The class action alleges Goldman Sachs aided and abetted the bad deal, even bullying advisors into it, Law360 reports.

 “Goldman ‘browbeat Dell’s (independent) special committee and its advisors into accepting

that transaction by repeatedly threatening a manipulative forced conversion of the Class V Stock into Dell Class C Stock,” the lawsuit says. 

The class action lawsuit was filed against Dell in 2018 as the company moved to exchange Class V stock for shares of its common stock in 2018.

Public shareholders say they were shortchanged by $6 billion or more when Dell Technologies paid $14 billion in cash and issued 149,387,617 shares of its Class C common stock for the Class V shares in December 2018, Law360 reports. 

Investors who held Dell Class V stock that was swapped for common stock say they were ripped off, and that Goldman Sachs helped make it happen. 

Friday’s motion alleges “Goldman worked hand-in- glove with Dell’s controllers to orchestrate an unfair transaction that expropriated billions” from the Class V stockholders.

The exchange was reportedly done to help finance Dell’s $67 billion acquisition of EMC Technologies in 2016.

Not only did Goldman strongarm advisors into the deal, it then “bragged—privately and publicly—that its work allowed the controllers to reap a multi-billion dollar windfall at the expense of Class V stockholders,” the class action motion reportedly states. Goldman Sachs got paid a $70 million success fee for the transaction, the class action states. 

It also added that Goldman “continually and knowingly advanced the controllers’ interests to the detriment of Class V stockholders,” while concealing the true value of the shares. 

The trial for the claims is scheduled for May 2022, Law360 reports.

Meanwhile, investors who say they lost more than $13 billion after buying “artificially high” Goldman Sachs stocks before the 2008 financial crisis must go back to the drawing board after a recent ruling from the U.S. Supreme Court.

In June, the court threw out a decision from Manhattan’s Second U.S. Circuit Court of Appeals that gave investors in the company permission to sue under federal investor protection laws. The Arkansas Teacher Retirement System and other pensions that bought shares in Goldman Sachs between February 2007 and June 2010 had filed a class action accusing the company of violating the Securities Exchange Act of 1934. 

What do you think of Goldman Sachs alleged involvement in this case? Let us know in the comments! 

The Class is represented by Ned Weinberger, Derrick Farrell and Mark Richardson of Labaton Sucharow LLP, David M. Cooper, Silpa Maruri, William R. Sears and Dominic Pody of Quinn Emanuel Urquhart & Sullivan LLP, Peter B. Andrews, Craig J. Springer, David M. Sborz and Christopher P. Quinn of Andrews & Springer LLC, Chad Johnson, Noam Mandel, Desiree Cummings and Jonathan Zweig of Robbins Geller Rudman & Dowd LLP, Domenico Minerva Joseph Cotiletta and Nathaniel Blakney of Labaton Sucharow LLP and Jeremy S. Friedman and David F.E. Tejtel of Friedman Oster & Tejtel PLLC.

The Dell Goldman Class V Stock Class Action Lawsuit is In re: Dell Technologies Inc. Class V Stockholders Litigation, Case No. 2018-0816, in the Court of Chancery of the State of Delaware.


Don’t Miss Out!

Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!


Read About More Class Action Lawsuits & Class Action Settlements:

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

One thought on Goldman Sachs ‘Browbeat’ Dell Advisors Into Accepting Bad Deal, Class Action Says

  1. Mary Mayrant says:

    Add me please.

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.