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Women suing Goldman Sachs in class action case tell court that firm duped them into giving up rights

Women claim Goldman duped them

Goldman Sachs Group tricked women into waiving their right to sue the firm, the women said in asking a court to bar the firm from forcing them into arbitration in a closely watched gender bias case.

In a filing on Thursday, the women asked the federal judge overseeing the class-action lawsuit — one of the biggest pay discrimination suits targeting a financial firm — to reject a magistrate’s recommendation last month to grant Goldman’s request to move 1,850 of the claims to arbitration.

Those claims represent most of the class suing the firm in a 14-year battle over allegations that Goldman let managers make biased pay decisions and denied women opportunities they deserved. The case looms large on Wall Street, where the biggest U.S. banks are led by men.

The women contend that almost 1,200 of the claims should be removed from the arbitration pool. They say the bank waited too long to press for arbitration in some cases and got women to sign improper agreements in exchange for stock awards and other compensation.

“We said at the time we were pleased with the court’s decision,” Goldman spokeswoman Maeve DuVally said. “That continues to be the case.”

— Bloomberg News

AMC says it has cash to withstand closures

AMC Entertainment Holdings, the world’s largest theater operator, said on Friday it had enough cash balance to withstand a global suspension of operations until a partial reopening in July, as the U.S. government plans to reopen the country’s economy.

Movie theaters will be the first businesses to reopen under President Trump’s guidelines to reopen companies shut down by the novel coronavirus in three stages.

Thousands of theaters that closed last month and the National Association of Theatre Owners had called on Congress and the Trump administration to provide emergency relief.

The first phase of Trump’s plan allows theater operators to reopen under strict physical distancing protocols.

AMC, which had a cash balance of $299.8 million as of March 31, had sought to raise $500 million through a notes offering. Peer Cinemark is also looking to raise $250 million through debt sale.

AMC said its business could be affected on reopening if disruptions caused by the virus lead to changes in consumer behavior including social distancing.

— Reuters

Nearly 3 million U.S. home loans are in forbearance plans that allow delayed mortgage payments without penalty, according to a report by Black Knight. The homeowners skipping payments because of lost jobs or income represent 5.5 percent of borrowers with $651 billion in unpaid principal. They break down to 4.9 percent of loans backed by Fannie Mae and Freddie Mac and 7.6 percent of loans extended to borrowers through Veterans Affairs and the Federal Housing Administration.

General Electric's aircraft-leasing division scrapped orders for the 737 Max worth at least $6.9 billion based on list prices, dealing another blow to Boeing as it grapples with a plunge in jetliner demand because of the coronavirus pandemic. The cancellation of 69 undelivered jets stems from an agreement with Boeing to "rebalance" the order book, GE Capital Aviation Services said. It already has 29 Max planes in its fleet and will maintain orders for 82 more of Boeing's best-selling plane, which has been grounded for more than a year after two deadly crashes. The decision deepens the pain for Boeing, which lost 150 orders for the beleaguered jet last month.

— From news services