Goldman Dodges Insurer's $120M CDO Claims On Appeal

Law360, New York (May 14, 2013, 3:26 PM ET) -- A New York state appeals court on Tuesday tossed ACA Financial Guaranty Corp.'s $120 million action targeting Goldman Sachs over a mortgage-backed securities transaction gone sour, finding Goldman never guaranteed that an outside hedge fund was taking an equity position favorable to ACA.

In overruling a lower court’s order, a divided panel of judges dismissed bond insurer ACA’s amended complaint alleging that Goldman tricked it into believing that hedge fund Paulson & Co. would take a long position in the first-loss tranche of the Abacus 2007-AC1...
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