Did Paulson fund conspire with Goldman?

From Reuters: 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."  Thursday's amended complaint contains new allegations that Goldman and Paulson deceived ACA into believing Paulson was investing in the CDO, when they knew he would instead bet against it by taking a short position.   It alleges that Goldman misrepresented that Paulson's and ACA's financial interests in Abacus were "aligned," and that Paulson fraudulently played the role of the "equity investor."

Wait...wait...there's more at http://newsandinsight.thomsonreuters.com/Securities/News/2013/01_-_January/Paulson_hedge_fund_conspired_with_Goldman_in_Abacus_-_lawsuit/