Sunday, 24 May 2015
Last updated 1 day ago
May 15 2013 | 1:51pm ET
A New York court threw out a collateralized debt obligation lawsuit against Goldman Sachs, leaving Paulson & Co. to defend the allegations alone—for now.
The New York State Supreme Court's Appellate Decision dismissed ACA Financial Guaranty's lawsuit, which accused Goldman and Paulson of misleading it about the hedge fund's role in the CDO. ACA, which both invested in and insured Abacus, alleges that Paulson and Goldman conspired to conceal the former's role in selecting the securities that went into Abacus and then the fact the Paulson was shorting the CDO.
But the Appellate Division, in a split, 3-2 decision, ruled that ACA should have known what was going on, calling the firm a "highly sophisticated commercial entity."
ACA said it would appeal the dismissal to New York's highest court, and might ask that Appellate Division to reconsider its decision. Goldman said it was "pleased with the court's decision."
The dismissal of ACA's claims against Goldman do not affect its claims against Paulson, which was added to the lawsuit in January. Paulson is seeking a dismissal from a trial-court judge, which Goldman sought and failed to receive, leading to the successful appeal.
According to ACA, Paulson agreed to play the role of an "equity investor" while actually betting against Abacus. A Goldman executive told ACA that Paulson's interest in Abacus was "100% equity," according to a transcript of a telephone call.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…