Goldman Sachs and Morgan Stanley are set to face a lawsuit from investors in relation to the collapse of Archegos Capital Management. The lawsuit stems from the fallout of Archegos' implosion earlier this year, which sent shockwaves through the financial industry.
Archegos Capital Management, a family office run by Bill Hwang, faced significant margin calls in March 2021, leading to a fire sale of its positions. This fire sale resulted in billions of dollars in losses for banks and other financial institutions that had exposure to Archegos.
