Goldman Sachs Group Inc. won dismissal of bond insurer ACA Financial Guaranty Corp.’s fraud lawsuit over a collateralized debt obligation known as Abacus, Bloomberg News reported yesterday. A New York state appeals court in Manhattan yesterday ordered the complaint against Goldman Sachs dismissed, overturning a lower-court ruling that had allowed the case to proceed. ACA claimed that New York-based Goldman Sachs and hedge-fund firm Paulson & Co. conspired to induce ACA to provide financial guaranty insurance for the Abacus transaction and deceived the insurer into believing Paulson was a long investor when in fact it was taking a short position. The appeals court said that ACA could have uncovered Paulson’s actual position, “but apparently chose not to.”
