From Reuters: Paulson & Co asked a judge to dismiss a
lawsuit accusing the firm of conspiring with Goldman Sachs Group Inc to get a
bond insurer to guarantee payments on an investment allegedly designed to fail.
In a filing in New York on Monday, Paulson said it
"made no misrepresentations" to ACA Financial Guaranty about the
collateralized debt obligation known as Abacus.
ACA brought the $120 million complaint against Goldman in 2011 and
amended its lawsuit in January, adding Paulson & Co and its hedge fund,
Paulson Credit Opportunities Master II Ltd, as defendants. The amended complaint claims Goldman and
Paulson deceived ACA into believing Paulson was investing in the CDO. Paulson
eventually took a short position on the CDO.
Paulson said it had nothing to do with how Goldman offset
its risk or how Abacus was sold to investors.
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