RMBS Insurer Sues Goldman

RMBS Insurer Sues Goldman in New York State Court

CIFG Assurance North America Inc. (“CIFG”) filed suit in New York Supreme Court against Goldman Sachs and affiliated entities, and M&T Bank, the originator of the majority of the loans that backed approximately $277 million of RMBS insured by CIFG. CIFG asserts claims for fraudulent inducements and breach of contracts, alleging that Goldman misrepresented or omitted important details concerning the mortgages, including Goldman’s alleged plan to offload its own exposure of these RMBS to the investors. In addition to seeking damages, CIFG has demanded that Goldman and M&T cure or repurchase the allegedly defective loans. Complaint.