According to reports, Goldman Sachs recently agreed to pay $100.5 million to policyholders of the now defunct General American Life Insurance to settle a pending lawsuit brought by General American in which it alleged that Goldman Sachs provided bad advice to the company. Other defendants named in the suit previously settled with General American.

The allegations against Goldman Sachs arose out of its role in the events that led to General American’s liquidity crisis. Specifically, General American alleged that Goldman Sachs failed to provide promised credit to the company, undervalued its assets in the sale of its assets to MetLife, and failed to disclose that MetLife was a Goldman Sachs client prior to providing Great American with its opinion on the sale of its assets.

In total, approximately $242 million has been recovered from former General American directors and advisers, including $29.5 million on behalf of General American's officers and directors, $95 million from a 2006 settlement with Morgan Stanley, $18 million from a settlement with KPMG, and the $100.5 settlement with Goldman Sachs.