How the Vampire Squid Gambled – And Lost $1.2 Billion in Sovereign Wealth
by Shah Gilani
Posted October 11, 2016
On March 18, 2016, the Libyan Investment Authority (LIA), a sovereign wealth fund set up by dictator Colonel Muammar Gaddafi in 2006, filed suit in London at The High Court of Justice’s Chancery Division against Goldman Sachs International. The suit claims the fund paid Goldman approximately $350 million to set up trades the LIA says it didn’t understand, which lost the fund $1.2 billion, everything it invested.
Instead of fraud, the LIA claims its “causes of action” are “undue influence” and “unconscionable bargain.” Goldman decided not to settle and believes it can beat the charges because, you know, there was never any undue influence and Goldman Sachs is not unconscionable. More…