Paulson Can't Escape $120M Abacus Suit, Insurer Says

Law360, New York (April 23, 2013, 7:41 PM EDT) -- Hedge fund Paulson & Co. Inc.'s nefarious motives when it shorted Goldman Sachs & Co.'s now-notorious Abacus transaction "can be readily inferred" from earlier pleadings that have survived judicial scrutiny, an insurer that backed the doomed deal said Monday in New York state court.

Monoline insurer ACA Financial Guaranty Corp. said that Paulson shouldn't be able to escape so easily from allegations it conspired with Goldman Sachs to hide the fact that Paulson intended to short the Abacus 2007-AC1 collateralized debt obligation transaction through a credit-default...
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