Reuters reports that Goldman Sachs won dismissal on Tuesday of fraud claims
brought by a bond insurer over a CDO tied to subprime mortgage securities
called Abacus.
In a 3-2 decision, a New
York state appeals court dismissed a complaint by ACA
Financial Guaranty Corp accusing Goldman of fraudulently inducing the
company to insure the CDO, or collateralized debt obligation. ACA Financial claimed Goldman deceived it into believing
Paulson & Co, a hedge fund, was a long investor in the Abacus CDO, when it
knew Paulson would take a short position…
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