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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.