7.20.11

In a case in the Sun Country bankruptcy in Minnesota, John Orenstein won summary judgment for the defendant. The plaintiff, a creditors' trust, brought a clawback claim against an individual for $500,000 and tried to disallow his claim for an additional $240,000. The issue was the individual's right to receive royalties for his role in creating the airline's "VIP Club" loyalty program.

7.1.11

Harry Niska successfully defended a former corporate director in Minnesota state court against claims that he breached his fiduciary duties and committed fraud. A trust representing shareholders of a failed corporation sued the director, alleging that he concealed facts when he recommended that the corporation enter into a financing transaction with an investment fund that the director was affiliated with. The court granted the director's motion to dismiss the complaint.

6.27.11

Jeff Ross and Harry Niska obtained summary judgment in New York state court on behalf of an investment banking firm in a dispute over fees. The defendant claimed that the investment banking firm didn't perform under the contract. The court held that the firm was entitled to the full $650,000 fee.

6.17.11

Jeff Ross and Harry Niska successfully defended a group of bondholders against a company's claim that the bondholders were engaged in a price-fixing conspiracy in CompuCredit Holdings Corp. v. Akanthos Capital Management, LLC, et al., Case No. 1:11-cv-117-TCB (N.D. Ga.) The holders argued that the case was filed in retaliation for their original lawsuit alleging that the company was funneling its assets to insiders. The court dismissed the antitrust complaint without even waiting for the last brief to be filed. The bondholders' case against the company and its principals remains pending.

2.10.11

Kelly Pierce successfully defended an employee against his former employer’s action to enforce a non-compete agreement in LJK Companies, Inc. v. Miller, Case No. 27-CV-10-16549 (Minn. Dist. Ct., Hennepin County).  In granting the employee’s motion to dismiss, the court found that the non-compete agreement was invalid and that the former employer’s complaint was not specific enough about the trade secrets that it sought to protect.

12.22.10

In KPMG LLP v. Cocchi, et al., Case No. 4D09-4867 (Fla. 4th DCA), Jeff Ross, Kelly Pierce, and Harry Niska represented a group of investors who lost money in the Madoff Ponzi scheme through intermediate investment funds (or "feeder funds"). In the trial court, the funds' auditor moved for arbitration of the investors' claims, based on arbitration clauses in the auditor's engagement agreement with the feeder funds. The trial court denied the auditor's motion. The Florida appeals court agreed, holding that the investors' claims were their own and not derivative of the funds' claims.

12.16.10

On August 5, 2010, Ross & Orenstein won summary judgment for an investor against a company that defaulted and contested its liability on an $800,000 promissory note. The judgment was entered one month later, in Parket v. T-Ink, Inc., Index No. 600398/2010 (Sup. Ct. N.Y. County). Through an aggressive campaign to enforce the judgment and over the debtor’s vigorous efforts to avoid payment, the investor collected the full balance plus interest within approximately ninety days. Enforcement of a subsequent award of attorney’s fees ($156,000) is pending.

11.17.10

Ross & Orenstein is co-counsel on a case brought by investors who lost over $50 million in Mortgages Ltd., a fraudulent enterprise in Phoenix that ultimately went into bankruptcy. The case was filed in state court against the company’s attorneys and accountants, who removed the case to bankruptcy court. The investors’ motion to remand the case back to the state court was granted. John Orenstein and co-counsel argued the motion for the investors. The defendants have appealed.

7.20.10

The judgment in AIG Global Securities Lending Corp v. Banc of America Securities, described below, was affirmed by the Second Circuit.

3.31.10

John Orenstein and Harry Niska defeated a company’s effort to avoid a $65 million put obligation, in Empire Resorts, Inc. v. Bank of New York Mellon, et al. Index No. 2959/09 (N.Y. Sup. Ct., Sullivan County). The company claimed that steps in the indenture were not followed to the letter under the provision requiring it to repurchase its convertible senior notes. The court found the company’s position “hypertechnical” and dismissed its declaratory judgment action.

7.5.09

Cases brought by Jeff Ross and John Orenstein were featured in “Hedge Fund Activism in the Enforcement of Bondholder Rights,” 103 Northwestern University Law Review 281 (Winter 2009). For the full text of the article, go to:
http://www.law.northwestern.edu/lawreview/v103/n1/281/LR103n1Kahan&Rock.pdf.

6.18.09

Following a six-week jury trial late in 2008, the court entered judgment in the amount of $143 million in January of 2009 and ratified the jury verdict in May 2009. AIG Global Securities Lending Corp v. Banc of America Securities, LLC 2009 WL 1360687 (S.D.N.Y. 2009). Jeff Ross was co-lead counsel for plaintiffs who received 100% of their asked-for damages. This case was the second largest securities fraud verdict nationwide and the 17th largest overall in 2008. The highly publicized case involved sophisticated institutional investors prevailing against a securities underwriter for fraudulently concealing material facts about an asset backed securities offering.