Supreme Court to Review Goldman Sachs Arbitration Dispute
The Supreme Court of the United States will hear a case regarding whether Goldman Sachs can arbitrate disputes with debtors in bankruptcy.
The Supreme Court of the United States agreed to hear a case involving Goldman Sachs and its attempt to arbitrate disputes with two debtors currently in bankruptcy. The legal challenge follows a decision by the Fourth Circuit that denied the investment bank's request to move the disputes into arbitration.
The conflict centers on alleged violations of the automatic stay, a legal provision that typically halts lawsuits and collection efforts against debtors during bankruptcy proceedings. The court will determine if the firm can bypass standard bankruptcy court proceedings in favor of arbitration for these specific claims.