The allegations against Goldman Sachs arose out of its role in the events that led to General American’s liquidity crisis. Specifically, General American alleged that Goldman Sachs failed to provide promised credit to the company, undervalued its assets in the sale of its assets to MetLife, and failed to disclose that MetLife was a Goldman Sachs client prior to providing Great American with its opinion on the sale of its assets.
In total, approximately $242 million has been recovered from former General American directors and advisers, including $29.5 million on behalf of General American’s officers and directors, $95 million from a 2006 settlement with Morgan Stanley, $18 million from a settlement with KPMG, and the $100.5 settlement with Goldman Sachs.