Goldman's motions denied in General American case - St. Louis Business Journal:

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Ohmer issued two orders July 18: one denying Goldman'x motion to dismiss the lawsuit entirely and one denying its request to be droppec fromthe lawsuit. The long-running case stemsz from the collapse of General Americanh after a liquidity crisisin 1999. The firm was once the largesg life insurance company in Missouri and among the largest private companies inthe St. Louis It was considering a publicc stock offering before it was forcedfinto receivership. General American's collapse resulted in what has been estimatex atbetween 1,000 and 2,000 jobs lost in the region, and lost equitu of more than $1 billion.
Lawyers representing Albery Riederer, the special liquidator in the case forthe , broughyt Goldman into the suit in March aftee reaching settlements with a number of otheer defendants. Attorneys for Riederer -- Paul Kovacs of Armstrong Teasdalein St. Louis and Richare Lombardo of in KansasCity -- have amended theire complaint several times. The lawsuit was originallty filed in 2004 against investment firm MorganStanley & Co.
and Leonard Rubenstein, formere president and chief executive of Conning an asset management companyu that was controlled by General Morgan Stanley settled in the case last yearfor $95 Rubenstein is the only executive from the formerr General American to be sued by the liquidators as an He remains a defendant. Representing Goldman is Gandolfo Deblasij of in New York and David Welld ofin St. Louis. Wellsw said Goldman cannot appeal eitherof Ohmer'z rulings. The rulings againsty Goldman said attorneys for the receivershiphave "sufficiently allege d each necessary element of all causes of action.
" The suit makesd eight claims against Goldman, includiny that it aided and abetted Morganb Stanley in its breach of dutie s and aided and abetted General American's senior managers in their breach of duties. like Morgan Stanley, was hired by General Americanj to assist with strategic alternativesw forthe company's businesses. Goldman was hired independentl y ofMorgan Stanley, the suit said, and had agreerd to provide General American $1 billionh to support potential liquidity needs.
Goldman's attorneys, in arguing for the firm'se dismissal from the case, told the court in June that the receivershipl lawyers waited more than seven and a half years afterGeneral American's collapsre to name Goldman in the matter. Ohmer's rulinh said parties in the case have already starteds pretrialdiscovery work. The judge has scheduled a status reporft on the casefor Sept. 11.