NY Judge Trims CIFG's $275M Suit Against Goldman Sachs

Law360, New York (May 3, 2012, 11:15 PM EDT) -- A New York judge on Thursday trimmed all but one of CIFG Assurance North America Inc.'s claims against Goldman Sachs & Co., leaving only a breach of contract claim in a suit accusing the investment bank of sugarcoating more than $275 million in bad home mortgages to shift its risk to the bond insurer.

Judge O. Peter Sherwood dismissed fraudulent inducement claims against Goldman and co-defendant M&T Bank Corp., saying CIFG, a sophisticated party, should have done its due diligence before insuring the bonds.

“The fraudulent...
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