ACA Financial Guaranty Corp. v. Goldman, Sachs & Co.

Manzanet-Daniels and Clark and, JJ.,

dissent in a memorandum by Clark, J., as follows: Flaintiff has adequately alleged justifiable reliance, inasmuch as the documentary evidence established that plaintiff performed an exercise of reasonable due diligence. I would therefore affirm the order of the motion court denying defendant’s motion to dismiss.

ACA Financial Guaranty Corp., plaintiff herein, issued a financial guaranty policy that “wrapped” ABACUS 2007-ACI, a financial product known as a synthetic collateralized debt *498obligation (CDO).1 A financial guarantor insurer such as plaintiff issues…