A unanimous Appellate Division, First Department, panel has revived claims filed by CIFG Assurance North America against Goldman Sachs & Co. accusing the investment bank of fraudulently inducing CIFG to insure over $275 million worth of residential mortgage-backed securities. The panel also revived fraud claims against M&T Bank, which originated some of the underlying mortgage loans and later sold them to Goldman.
The order partly reversed a May 2012 order by Supreme Court Justice O. Peter Sherwood (See Profile) dismissing the fraud claims. It affirmed Sherwood’s decision to let separate breach of contract claims go forward.
