Goldman Sachs and Morgan Stanley are being sued by shareholders of a Chinese e-commerce company over claims of trading based on Archegos-related inside information.
Investors of Vipshop Holdings Ltd. have filed a lawsuit in a New York federal court, alleging that the two American banks sold several large blocks of shares in companies which Bill Hwang’s Archegos also invested after confidently learning that the family office was likely to fail to meet margin calls.
Vipshop shares were driven into «a complete tailspin» following the sales, the investors said.
Block Trades
Goldman Sachs sold $6.6 billion of shares in Baidu Inc., Tencent Music Entertainment Group and Vipshop before the market opened in the U.S. on March 27, according to a «Bloomberg» report earlier this year citing an e-mail to clients.
This was followed by a $3.9 billion sales of shares in ViacomCBS Inc., Discovery Inc., Farfetch Ltd., iQiyi Inc. and GSX Techedu Inc.
Separately, Morgan Stanley sold around $5 billion of shares on March 25, according to a «CNBC» report citing unnamed sources.
