ACA Files Abacus Suit Against Goldman Sachs in New York State Court

ACA Financial Guaranty Corp. filed suit on January 6, 2011 against Goldman Sachs, alleging fraud and unjust enrichment in connection with the Abacus 2007-AC1 collateralized debt obligation. ACA alleges Goldman designed the securitization to benefit Paulson & Co., who shorted the portfolio, and deceived ACA into believing that Paulson & Co. was an equity investor in the portfolio. ACA insured senior tranches and also invested in the Abacus notes. Complaint.