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Paulson Added to ACA Financial Abacus Suit Against Goldman Sachs

Paulson & Co. can be added as a defendant in ACA Financial Guaranty Corp.’s lawsuit against Goldman Sachs Group Inc. over the collateralized debt obligation known as Abacus, a judge ruled.

ACA Financial sued Goldman Sachs in New York State Supreme Court in Manhattan in 2011, accusing the investment bank of inducing it to provide insurance for the Abacus deal. ACA this month asked for permission to amend the complaint to add Paulson, saying that the hedge fund and Goldman Sachs conspired together to convince ACA to insure the investment.