Fiduciary Duty by Trustee Bank/Investment Manager»
represented two Dutch pension funds in federal lawsuits
against a major financial provider of investment and trust services.
Our clients lost hundreds of millions of dollars when the provider
failed to disclose material risks of collective investment funds
that were rendered worthless upon the failure of Lehman
Brothers. After depositions and exchange of expert
reports, the cases settled on favorable terms.
represented a public company, its key executives and its deferred
compensation plan in federal lawsuits in Philadelphia, San
Francisco, and New Orleans regarding the “top hat” status of the
plan and the participants’ rights to account balances under ERISA.
After several rulings in favor of our clients, the claims of sixteen
plan participants settled on favorable terms.
Investment Advice by ERISA Fiduciaries»
represented the largest plumbing distributor in New England in an ERISA action in federal court against fiduciaries for its retirement
plan. The defendants were investment advisors who failed to inform
the plan that the strategy of one of its investment funds had
changed and the fund was heavily invested in subprime
mortgage-related securities. The case was transferred to
the Southern District of New York as part of a consolidated
multidistrict litigation involving subprime mortgage-related
fixed income funds. After discovery, summary judgment
briefing, and mediation, the case settled on favorable terms.
of New Hampshire Bank Commissioner»
the Governor of New Hampshire and the New Hampshire Executive
Council in an administrative proceeding to remove from office the
appointed New Hampshire Bank Commissioner. The removal petition
alleged inefficiency, neglect of duty and misfeasance by the Bank
Commissioner in connection with the New Hampshire Banking
Department’s failure to exercise its regulatory authority and to
detect an extensive fraud and Ponzi scheme by a mortgage company
regulated by the New Hampshire Banking Department. After
several days of testimony, the Bank Commissioner agreed to the
in Madoff Investigation»
represented a registered securities broker with respect to two
subpoenas issued by the Massachusetts Securities Division to appear
in connection with its investigation and prosecution of a
broker-dealer firm for alleged improprieties relating to investments
with Bernard Madoff. Our client declined to appear in response to
subpoenas based on lack of jurisdiction and due process grounds. The
Securities Division did not seek to enforce the subpoenas.
Massachusetts Securities Division Action Re: Auction Rate Securities»
represented as co-counsel a major broker-dealer in defending an
administrative proceeding by Massachusetts securities regulators for
alleged fraud and misrepresentations in connection with the sale of
auction-rate securities. After extensive motion practice, the case
was resolved by a favorable consent decree on the eve of trial.
against Excess Loss Insurer and Administrative Services Provider for
Health Benefits and Excess Loss Insurer»
represented a municipal joint purchase group comprised of fifty-two
governmental units in a lawsuit against a health care administrative
services provider for failure to pay timely a multimillion dollar
claim before the run-out period under the excess loss insurance
policy expired. After discovery and mediation, we obtained a
favorable settlement and a substantial contribution from the excess
Fraud/Embezzlement by Entertainer’s Business Manager»
represent a comedian/actor and his business entity in civil efforts
to locate, preserve and recover more than $10 million of assets
stolen by his half-brother while he was supposedly managing our
client’s assets. The matter involved filing actions and pursuing
assets in two states and working closely with the Massachusetts Attorney General’s Office.
Building Tenant against National Bank/FDIC»
represented a national bank that made a construction loan for
development of a mixed-use building in Boston in a lawsuit by a
building tenant. The lawsuit sought specific performance by the
building owner/borrower and our client regarding an alleged purchase
and sale agreement for a commercial condominium in the building.
Following a loan default by the owner/borrower, our client
foreclosed, transferred title to a single purpose entity, and was
taken over by the FDIC, which became our client. After removing the
case to federal court, we prevailed on a motion to dismiss all
claims against our client.
Unauthorized Bond Sale by Custodian Bank»
represented a registered mutual fund in a claim against its
custodian bank for selling bonds from the portfolio without
authorization. After an exchange of letters and a meeting of the
parties with counsel, the matter settled favorably.
Negligent Disbursement of Bond Proceeds and Subordination of
represented the successor trustee and major bondholders of
$10,000,000 industrial revenue bonds in a federal diversity action
in Tennessee against the former trustee bank for misallocation of
bond proceeds on a hotel construction project and the improper
subordination of the bondholders’ first priority security interest.
After discovery in multiple states, including depositions of the
defendant’s accounting expert, we obtained a settlement on the eve
We represented an international investment bank in a multi-million dollar lawsuit by an investor for fraud, negligence and breach of fiduciary duty. The case was dismissed for lack of personal jurisdiction and an interlocutory appeal was successfully defended.