Goldman Sachs Conflicted in Redfin-Rocket Merger, Suit Says (1)

Redfin Corp.'s financial adviser, Goldman Sachs & Co., has a conflict of interest potentially marring the real estate business’s planned merger into Rocket Cos., an investor says in a suit over proxy disclosures.

Goldman Sachs Bank USA has a lending relationship with Rocket that was only “vaguely” disclosed in the proxy statement seeking to persuade Redfin shareholders to vote in favor of its $1.75 billion tie-up with Rocket, Jason Morano says. He filed his proposed class action May 9 in the US District Court for the Western District of Washington.

The proxy also “fails to disclose key inputs ...