Skip to content
Subscriber Only

ACA Financial Asks Court to Revive Goldman Suit on Abacus

Corrected

ACA Financial Guaranty Corp. urged New York’s top court to reinstate a suit accusing Goldman Sachs Group Inc. of conspiring to force it to insure an investment that led to a $550 million settlement with regulators.

Goldman failed to disclose the “essential fact” that billionaire John Paulson and his hedge fund were short sellers of the securities in the collateralized debt obligation known as Abacus, while telling the bond insurer they were betting the portfolio would succeed, Marc Kasowitz, a lawyer representing ACA, told the state Court of Appeals Thursday in Albany.