ACA FINANCIAL GUARANTY CORP. v. GOLDMAN, SACHS & CO.

9037, 650027/11

131 A.D.3d 427 (2015)

15 N.Y.S.3d 764

2015 NY Slip Op 06562

ACA FINANCIAL GUARANTY CORP., Respondent, v. GOLDMAN, SACHS & CO., Appellant.

Appellate Division of the Supreme Court of New York, First Department.

Decided August 18, 2015.


Plaintiff, ACA Financial Guaranty Corp., alleges that defendant, Goldman, Sachs & Co., fraudulently induced plaintiff to issue a financial guaranty for a synthetic collateralized debt obligation while concealing the fact that its hedge fund client Paulson & Co., which selected most of the portfolio investment securities, planned to take a "short" position. Plaintiff alleges that had it known this information, it would not have agreed to the guaranty as it exposed...

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