Hedge fund billionaire John Paulson will not testify in the high-profile civil case against former Goldman Sachs bond trader Fabrice Tourre, who is on trial in federal court in New York.
The U.S. Securities and Exchange Commission accuses Tourre of failing to tell investors that 57-year-old Paulson's hedge fund firm intended to bet against Goldman Sachs' Abacus 2007-AC1. The $2 billion offering was tied to subprime mortgage bonds and known as a synthetic collateralized debt obligation.
Tourre denies wrongdoing.
This morning, U.S. District Judge Katherine Forrest cited a July 28 letter by Tourre's lawyers saying they no longer plan to call Paulson and others on their witness list to testify.
Sean Coffey, a lawyer for Tourre, confirmed the legal team would not be calling Paulson, as did a spokeswoman for the Southern District of New York in an emailed statement.