Paulson Pledges To Pay Legal Fees In Goldman Case

Apr 26 2010 | 3:41pm ET

He and his firm are all over the Securities and Exchange Commission lawsuit accusing Goldman Sachs of fraud, but neither John Paulson nor his firm have been charged with any wrongdoing. If that changes, however, one thing Paulson & Co. investors won’t have to worry about are legal bills.

The New York-based hedge fund, which manages $32 billion, has pledged to cover any legal fees stemming from the collateralized debt obligation at the heart of the Goldman case. The Wall Street giant is accused of misleading investors about Paulson’s role in choosing the securities that went into the CDO, as well as its bet against the CDO.

In a letter to investors on Wednesday, Paulson expressed confidence that the firm won’t be hit with “legitimate causes of action.” But he said they are prepared nonetheless.

“We do operate in a litigious environment, and there are no guarantees that we will not be named in an action,” he wrote.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of