Goldman Can’t Shake Fraud Claims In $120M Abacus Suit

Law360, New York (April 24, 2012, 8:59 PM EDT) -- A New York state judge on Tuesday upheld fraud claims in ACA Financial Guaranty Corp.'s $120 million suit accusing Goldman Sachs Group Inc. of misrepresenting material facts about the position a hedge fund took on the so-called Abacus mortgage-backed transaction to the deal's insurer.

Judge Barbara R. Kapnick denied Goldman's motion to dismiss two fraud claims in the suit, but agreed to toss an unjust enrichment claim on the grounds that ACA had failed to prove that Goldman had unfairly profited at ACA's expense, allowing the...
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