Goldman Sachs wins $1.2bn legal suit against Libyan investment fund

US investment bank Goldman Sachs has triumphed in a legal dispute with Libya's sovereign wealth fund after a High Court judge in London found that the company did not exert undue influence in a group of transactions though which the fund lost more than $1bn.

The Libyan Investment Authority accused Goldman of abusing its trust and pushing it into unreliable investments.

Judge Vivien Rose decided that there was insufficient evidence to suggest that the bank unfairly pushed the fund towards the derivatives trades.

The wealth fund was set up under former dictator Muammar Gaddafi, and the trades that his fund bought from Goldman ended up being worthless due to the collapse of the shares involved in the 2008 financial crisis.

The fund also accused Goldman of paying for extravagant gifts and entertainment, as well as offering an internship to one of its executives' brothers, in an attempt to coax them into a deal.

In the written decision, Rose said that "their relationship did not go beyond the normal cordial and mutually beneficial relationship that grows up between a bank and client."

The LIA said in a statement that they were not happy with the decision.

"The Libyan Investment Authority is naturally disappointed with the judgment handed down today," the statement read.

"Time will be needed fully to digest the judgment and all options are being considered at this time."