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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.