A year after dismissing the case, an intermediate appeals court in New York has agreed to let ACA Financial Guaranty Corp take its long-running fraud case against Goldman Sachs & Co. to the state’s highest court.
In a short order issued on Thursday, New York’s Appellate Division, First Department ruled that ACA can try to revive claims that Goldman duped it into insuring the bank’s infamous ABACUS collateralized debt obligation by lying about the hedge fund Paulson & Co.’s involvement in selecting the underlying mortgage pool for the deal. Goldman had argued that a prior First Department ruling in its favor was “consistent with well-settled New York law,” and therefore didn’t merit further review.
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