Goldman Sachs DocuSign Autocallable Notes Lawsuits

Goldman Sachs DocuSign Autocallable Notes Results in Potential Significant Investor Risk

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

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

The structured note in question—Goldman Sachs’ Contingent Income Auto-Callable Securities linked to DocuSign, Inc. (CUSIP: 36260Y575)—was issued in June 2021 with a face value of $29,647,360. The note’s performance is tied to the share price of DocuSign, and poor performance could substantially reduce or eliminate the final payout.

Details of the Investment: Goldman Sachs DocuSign

• Issue Date: June 23, 2021

• Linked Security: DocuSign, Inc. (NASDAQ: DOCU)

• Product Type: Contingent Income Auto-Callable Structured Note

• Face Value: $29,647,360

• Final Payout: Depends on DocuSign stock price on June 18, 2024
  • If price ? $178.3795 (65% of initial price): $10 + final coupon ($0.2625) per note

  • If price < $178.3795: $10 × (final share price ÷ $274.43) — 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 $10,262.50 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 DOCU stock closes ? $274.43 on any observation date.

• If not called, and the stock closes < $178.3795 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

Structured products like this one are often marketed as offering the potential for higher returns and some downside protection, but in practice, they can expose investors to issuer credit risk, market risk, and complexity risk. Many retail investors may not fully understand how these products work or the conditions under which they can suffer significant losses.

The Financial Industry Regulatory Authority (FINRA) has previously issued warnings about the risks of structured products, especially for investors who may not have the experience or risk tolerance to navigate them.

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 DocuSign 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.