Goldman, Morgan Stanley Defeat Archegos Suits For Second Time

A federal court tossed out seven shareholder lawsuits alleging Goldman Sachs Group Inc. and Morgan Stanley traded on inside information when they sold stock in which Archegos Capital Management, a private equity firm that failed in March 2021, had large positions.

The ruling by Judge Jed S. Rakoff of the US District Court for the Southern District of New York comes a year after Judge Paul A. Crotty of the same court dismissed earlier versions of the suits, finding the plaintiffs failed to show insider trading by the investment banks under any of three securities-law provision.

Rakoff will issue ...