Goldman Says It's Not Liable For Fraud In $325M CDO Spat

Law360, New York (July 7, 2016, 6:14 PM EDT) -- Goldman Sachs & Co. on Thursday asked a New York state judge to throw out a lawsuit accusing it of tricking bond insurer CIFG Assurance North America Inc. into backing a $325 million collateralized debt obligation containing toxic residential mortgage-backed securities, saying it isn’t liable for fraud.

According to the suit, Goldman promised CIFG that collateral for the CDO, dubbed Fortius II Funding Ltd., would be selected by a manager acting independently and in the interest of investors. Instead, Goldman hired Aladdin Capital Management LLC and...
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