Thursday, 26 November 2015
Last updated 1 day ago
Jan 3 2013 | 11:43am ET
Paulson & Co. has been sued for its role in a controversial Goldman Sachs collateralized debt obligation.
ACA Financial Guaranty Corp., which invested in and insured the CDO, Abacus-2007-AC1, added Paulson as a defendant in its lawsuit against Goldman, filed two years ago. ACA alleges that the hedge fund "at a bare minimum…gave Goldman Sachs substantial assistance in achieving the fraud."
According to ACA, Goldman misled it about Paulson's role in selecting the securities that went in to Abacus. The company claims the CDO was already "worthless" when Goldman marketed it to ACA.
According to the Securities and Exchange Commission, Abacus was structured and marketed on Paulson's behalf, and the hedge fund was shorting it. Paulson called ACA's amended complaint "completely without merit."
"As there is no basis in law or fact for the proposed amendment, Paulson will defend itself against this baseless action if the amendment is allowed," spokesman Armel Leslie said.
ACA had sought $120 million from Goldman.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…