|The Bakers, 1990, NYTimes|
The Bakers sold Dragon to Lernout & Hauspie for $580 million in stock, which sounds good at first, but L & H turned out to be a fraud and collapsed, leaving the Bakers with nothing.
The Bakers are now suing Goldman Sachs for one billion dollars.
The sale to L&H was brokered by Goldman Sachs, which collected millions of dollars in fees, and, it turns out that Goldman Sachs had previously considered investing in L & H, but had walked away after some digging into the company.
Does that sound familiar? A Wall Street firm making a commission by selling something that they themselves would not buy? This story grosses me out.