Goldman Sachs Sued for Employee Password Misuse

Goldman, Sachs & Co. employees repeatedly used others’ passwords, without authorization, to access a proprietary database of hedge fund contact data and other investment information, according to a complaint filed in the U.S. District Court for the Southern District of New York May 6 (Ipreo Holdings LLC v. Goldman, Sachs & Co.).

Bethesda, Md.-based Ipreo Holdings LLC, which operates a copyright-protected wealth management-related database called “bigdough,” alleged that Goldman employees’ unauthorized access to the database is not in dispute. Through that access, Goldman employees downloaded significant proprietary information—which the company used to further its business interests—Ipreo alleged.

The ...