Goldman Sachs Affirm Autocallable Notes Lawsuits Investigation

Goldman Sachs Affirm Autocallable Notes Results in Potential Significant Investor Risk

The White Law Group is investigating potential securities lawsuits involving Goldman Sachs Affirm Autocallable Notes.

Investors who purchased a structured product from Goldman Sachs linked to Affirm Holdings, Inc. may face significant downside risk depending on stock performance.

The structured note in question—Goldman Sachs’ Contingent Income Auto-Callable Securities linked to Affirm Holdings, Inc. (CUSIP: 36261U879)—was issued in December 2021 with a face value of $41,722,600. The note’s performance is tied to the share price of Affirm, and poor performance could substantially reduce or eliminate the final payout.

Details of the Investment

• Issue Date: December 1, 2021

• Linked Security: Affirm Holdings, Inc. (NASDAQ: AFRM)

• Product Type: Contingent Income Auto-Callable Structured Note

• Face Value: $41,722,600

• Final Payout: Depends on Affirm stock price on November 26, 2024
  • If price ? $68.49 (50% of initial price): $10 + final coupon ($0.5375) per note

  • If price < $68.49: $10 × (final share price ÷ $136.98) — leading to potential full loss

• Total Loss Potential: Up to 100% of principal

This means that an investor who put in $100,000 could receive as little as $0 if the stock declines significantly, or up to approximately $10,537.50 if the security is called early or the stock performs well.

Why Could the Investment Lose Value?

Autocallable structured products offer enhanced coupons but expose investors to losses if the underlying stock underperforms. In this case:

• The note automatically calls if AFRM stock closes ? $136.98 on any observation date.

• If not called, and the stock closes < $68.49 on maturity, investors lose value dollar-for-dollar with the stock’s decline from the initial price.

• Coupons are contingent and only paid if the stock is above the threshold on determination dates.

Understanding the Risks of Autocallable Notes

Although marketed with quarterly coupon potential and limited downside, risks include:

• Market risk of the underlying stock (AFRM).

• Credit risk of GS Finance Corp. and The Goldman Sachs Group, Inc.

• No protection if stock breaches the downside threshold.

• Illiquidity and possible early call risk limiting gains.

Did Your Financial Advisor Recommend This Investment?

Brokerage firms have a duty to ensure that investment recommendations are suitable for each client, based on their risk tolerance, investment objectives, and overall financial profile. If your financial advisor recommended this ViacomCBS-linked structured note without fully explaining the risks—or if it was an unsuitable recommendation for your needs—you may be able to recover your investment losses through FINRA arbitration.

FINRA Arbitration vs. Class Action

Many investors wonder if a class action lawsuit is better than pursuing an individual FINRA arbitration claim. Generally:

• If your losses exceed $100,000, individual arbitration may be more appropriate.
• Class actions are typically better suited for smaller, uniform claims.

Free Consultation

The White Law Group is investigating potential claims involving the  Goldman Sachs Affirm Autocallable Notes  and other autocallable products. If you have suffered losses and would like to speak with a securities attorney about your legal options, please call us at (888) 637-5510 for a free consultation.

You can also visit www.whitesecuritieslaw.com for more information on our firm and ongoing investigations.