Goldman, Morgan Stanley sued over Archegos-tied sales of Vipshop

Goldman, Morgan Stanley sued over Archegos-tied sales of Vipshop
-A +A

(Oct 13): Goldman Sachs Group Inc. and Morgan Stanley were sued by shareholders of a Chinese e-commerce company that accused the banking giants of trading on inside information when unloading the stock they held for Archegos Capital Management.

The suit, which was filed in a New York federal court by Vipshop Holdings Ltd. investors, alleges that the two firms sold several large blocks of shares in companies in which Archegos held positions after confidentially learning that Bill Hwang’s family office was likely to fail in meeting margin calls. The sales sent Vipshop shares into “a complete tailspin,” the lawsuit says.

A representative for Goldman Sachs declined to comment and a spokesman for Morgan Stanley didn’t immediately comment.