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ALBANY, N.Y. (AP) — A ruling from New York's highest court means a bond insurance company's lawsuit against Goldman Sachs can continue.
ACA Financial Guaranty Corp. is seeking $120 million in damages in the lawsuit, which alleges Goldman Sachs "fraudulently concealed" details about a subprime mortgage-backed investment product that later cost ACA hundreds of millions of dollars.
The Court of Appeals in a 5-2 decision Thursday reversed a lower-court ruling that had dismissed the case.
ACA's lawsuit says Goldman Sachs hid knowledge that a hedge fund investing in the product was betting on it to fail.
A Goldman Sachs spokesman calls Thursday's ruling a disappointment but says the firm is confident ACA's legal claims will be unsuccessful.
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