NEW YORK — A New York state appeals court dismissed a lawsuit brought by insurer ACA Financial Guaranty Corp. against Goldman Sachs over an investment that went bad.
In a ruling issued Tuesday, the appeals court granted Goldman's motion to dismiss the case, reversing a lower court decision.
ACA sued Goldman in January 2011, seeking $30 million in compensatory and $90 million in punitive damages in connection with a portfolio of securities called Abacus.
Recommended For You
The insurer claimed that Goldman sold the portfolio even though hedge fund client Paulson & Co. designed the portfolio to fail, generating fees for Goldman.
Goldman and Paulson made money from the investment, while investors lost more than $1 billion.
Goldman paid the Securities and Exchange Commission $550 million to settle charges related to Abacus.
A Goldman spokesman says the company is pleased with the court's decision.
A call to attorneys for ACA Financial was not immediately returned.
Shares in Goldman Sachs ended regular trading up $4.89, or 3.3 percent, at $154.52. The stock lost 72 cents to $153.80 in after-hours trading.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more information visit Asset & Logo Licensing.
