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
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…