Goldman Sachs Alibaba Autocallable Notes Results in Potential Significant Investor Risk
The White Law Group is investigating potential securities lawsuits involving Goldman Sachs Alibaba Autocallable Notes.
Investors who purchased a structured product from Goldman Sachs linked to Alibaba Group Holding Limited may face significant downside risk depending on stock performance.
The structured note in question—Goldman Sachs’ Contingent Income Auto-Callable Securities linked to Alibaba Group Holding Limited (CUSIP: 36260Y443)—was issued in June 2021 with a face value of $32,884,440. The note’s performance is tied to the share price of Alibaba, and poor performance could substantially reduce or eliminate the final payout.
Details of the Investment
- Issue Date: June 16, 2021
- Linked Security: Alibaba Group Holding Limited (NYSE: BABA)
- Product Type: Contingent Income Auto-Callable Structured Note
- Face Value: $32,884,440
- Final Payout: Depends on Alibaba stock price on June 11, 2024
- If price ? $148.148 (70% of initial price): $10 + final coupon ($0.25) per note
- If price < $148.148: $10 × (final share price ÷ $211.64) — 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 $10,250 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 BABA stock closes ? $211.64 on any observation date.
- If not called, and the stock closes < $148.148 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 (BABA).
- 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 Alibaba 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.
Last modified: May 21, 2025
