NEW YORK–John Paulson's hedge fund will have to defend claims that his firm conspired with Goldman Sachs Group Inc to fraudulently induce a bond insurer to guarantee payments on risky debt, court papers show.
Bond insurer ACA Financial on Thursday filed an amended complaint naming Paulson & Co and its hedge fund Paulson Credit Opportunities Master II Ltd as defendants in a $120 million lawsuit it brought against Goldman in 2011.
The lawsuit centers on a collateralized debt obligation known as Abacus, which ACA claimed was designed to fail so that Paulson could reap "huge profits" and Goldman "huge fees."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
