Yahoo Finance·2025-09-16 16:40Core Viewpoint - Goldman Sachs and Morgan Stanley successfully defeated appeals from investors regarding allegations of market manipulation and insider trading linked to the collapse of Archegos Capital Management, which was valued at $36 billion [1][2]. Group 1: Legal Proceedings - The 2nd U.S. Circuit Court of Appeals ruled in a 3-0 decision that Archegos did not qualify as an insider with fiduciary duties to the companies whose stocks it owned [1]. - The court found no evidence that Goldman and Morgan Stanley acted in Archegos' best interest or tipped preferred clients about its financial troubles [4]. Group 2: Financial Impact - Archegos' collapse was attributed to Bill Hwang's use of total return swaps, leading to an estimated $160 billion in stock exposure [3]. - The fallout from Archegos' collapse resulted in significant losses for other banks, including Credit Suisse and Nomura Holdings [4]. Group 3: Settlements and Previous Cases - In July, Goldman, Morgan Stanley, and Wells Fargo agreed to pay a total of $120 million to settle a lawsuit from former ViacomCBS shareholders who claimed the banks concealed conflicts of interest [6]. - The recent court decision upheld a prior dismissal of related cases by U.S. District Judge Jed Rakoff [6].