CIFG Gets Fraud Claims Restored In $275M Goldman Suit

Law360, New York (May 7, 2013, 4:00 PM EDT) -- A New York state appeals court on Tuesday revived CIFG Assurance North America Inc.'s claims that Goldman Sachs & Co. and M&T Bank Corp. duped it into backing up a $275 million portfolio of bad home mortgages, reversing a trial court's finding that the bond insurer's due diligence precluded a fraudulent inducement claim.

The unanimous decision reverses Manhattan trial Judge Peter Sherwood, who dismissed fraud claims against Goldman Sachs and co-defendant M&T Bank in May 2012, saying CIFG, a sophisticated party, should have done its homework...
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.