March 26, 2015 / 9:17 PM / 4 years ago

N.Y. court urged to revive fraud suit against Goldman Sachs

ALBANY, N.Y. (Reuters) - A lawyer for a New York-based bond insurer on Thursday asked the state’s top court to revive its $120 million fraud suit claiming Goldman Sachs lied about a pool of mortgage-backed securities in the time leading up to the financial crisis.

Marc Kasowitz of Kasowitz Benson Torres & Friedman - who represents ACA Financial Guaranty Corp - told the Court of Appeals that Goldman in 2007 deceived ACA into believing hedge fund Paulson & Co was a long investor in a collateralized debt obligation called Abacus, when it knew Paulson was betting Abacus would fail.

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