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Goldman Sachs held liable for infringement by its investee company
12 Jul 2018
The EU General Court has today ruled that Goldman Sachs, which had a financial investment in the group of companies containing one of the parties found guilty in the power cable makers cartel, was correctly held liable, jointly and severally, for a fine of €37.3 million imposed on the cartelist Prysmian. There was no evidence that Goldman Sachs (or its investee vehicle) had instigated the cartel or been involved in it: but that is not something, the General Court said, the EU Commission is required to demonstrate in order to hold a parent company jointly and severally liable with the relevant subsidiary for payment of the fine. Once one member of the "undertaking" is found guilty, that gives rise to the collective responsibility of all the principals in the group structure for the breach of the competition rules.
