Insurer sues Paulson firm

ACA Financial Guaranty sued billionaire hedge fund manager John Paulson's firm for allegedly inducing the company to insure part of a mortgage-linked investment that soured

ACA Financial Guaranty sued billionaire hedge fund manager John Paulson's firm for allegedly inducing the company to insure part of a mortgage-linked investment that soured.

The amended complaint, filed by the bond insurer in New York state court Wednesday, adds Paulson & Co. and its Credit Opportunities Master II fund as defendants in a suit ACA filed in January 2011 against Paulson's banker, Goldman Sachs.

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