Paulson Named in Goldman's 'Doomed To Fail' Lawsuit

John Paulson

Paulson & Co., the New York hedge fund, was named as a defendant in a proposed revised lawsuit by ACA Financial Guaranty against Goldman Sachs over a collateralized debt obligation called Abacus.

Bloomberg reports that Paulson and Goldman Sachs conspired to induce ACA to provide financial guaranty insurance for the Abacus deal, which was 'doomed to fail', the firm said in papers filed Wednesday in New York State Supreme Court in Manhattan. ACA, which sued Goldman Sachs in 2011, is seeking court permission to file a revised complaint adding Paulson as a defendant.

'The proposed amended complaint properly pleads that, at a bare minimum, Paulson gave Goldman Sachs substantial assistance in achieving the fraud', ACA said.

Hit the link below to access the complete Bloomberg article:

Paulson Named in ACA’s Revised Goldman Sachs CDO Suit

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