Deals
Goldman Jury Reviews Testimony Bank Not at Fault on Deal
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A jury deliberating whether Goldman Sachs Group Inc. was negligent in helping arrange the doomed $580 million sale of speech-recognition pioneer Dragon Systems Inc. asked to see testimony by a former Dragon president who said the bank wasn't at fault for the deal's failure.
The former executive, John D. Shagoury, testified on Jan. 9 in federal court in Boston that he didn’t blame the bank for the 2000 all-stock deal that was rendered worthless months later when buyer Lernout & Hauspie Speech Products NV collapsed in an accounting fraud and filed for bankruptcy. U.S. District Court Judge Patti Saris said yesterday that the jury can review a transcript of Shagoury’s testimony.