The witness statement from Catherine McDougall, then a lawyer at Allen & Overy, is being cited in the London High Court hearing concerning the bank's relationship with the Libyan Investment Authority (LIA).The LIA is suing Goldman Sachs for about US$1b in relation to poor investments that were made in 2008. The LIA claims that Goldman Sachs exploited the LIA’s inexperience when it sold them risky derivative products. Ms McDougall was quoted as talking about a ‘lavish’ trip by LIA employees to Morocco where ‘there was heavy drinking and girls involved’, with a Goldman Sachs banker allegedly picking up the bill. Ms McDougall said, according to her statement: ‘I was shocked by all of this and a number of red flags were being raised in my mind.’ Ms McDougall returned to London in August 2008 after the LIA made a complaint about her. She resigned soon after. She said in the witness statement: ‘I was quite traumatised by the experience.’ Source: Bloomberg