Goldman not obliged to disclose Wells notice

The Financial Times reports:

A US judge ruled Goldman Sachs had no obligation to tell investors that the Securities and Exchange Commission intended to file civil fraud charges alleging the bank misled investors over its sale of a mortgage-related security.

The decision dismissing a claim in a shareholder lawsuit could have broad implications for companies that need to decide whether to disclose “Wells notices”, as the written warnings from the SEC are known. The judge allowed other claims against the bank to proceed.