A federal judge has allowed a 12-year-old suit to go forward charging that Citibank assisted a rogue foreign currency trader in covering up nearly $600 million in losses.
NY Commercial Litigation Insider
In allowing a shareholder suit to proceed, a Commercial Division judge has found the "business judgment rule" is inapplicable where a company's directors ignored red flags and rushed into an ill-advised acquisition in order to avoid losing their investments.
The fact that Bernard Madoff orchestrated his Ponzi scheme under two hats—that of "investment advisor" and "securities broker"—means an insurance policy meant to indemnify for losses suffered as a result of an investment advisor's fraud is worthless, an appellate court ruled Thursday.
The First Department last week ruled on five appeals from Manhattan's Commercial Division, upholding three and reversing two.
Carren B. Shulman of Sheppard, Mullin, Richter & Hampton writes: In this uncertain economy, consignment is realizing a resurgence and may be an effective cost saving measure for vendors/consignees. This article addresses the law on consignment and how consignors protect themselves.
In their Commercial Division Update, George Bundy Smith and Thomas J. Hall write that a number of recent cases demonstrate that if reliance on privileged materials is needed to prove a claim or defense, the courts usually will find that the privilege has been waived. However, the relevance of privileged materials is not the determining factor in at-issue waivers; rather, the privileged materials must be directly at issue in the case.
In her Secured Transactions column, Barbara M. Goodstein, a partner at Mayer Brown, writes: Two recent bankruptcy court decisions reflect the importance of distinguishing between a blanket lien collateral description in a security agreement and one in a UCC financing statement.
Timothy J. Coleman and Emily B. Holland write: Although it did not bar all extraterritorial claims, the U.S. Supreme Court's decision in 'Kiobel v. Royal Dutch Petroleum' shut the door to most Alien Tort Statute suits brought by foreign plaintiffs against foreign defendants for conduct occurring on foreign soil. But as to how courts should confront claims not involving Kiobel's "foreign-cubed" fact pattern, the legal community continues to debate. Recent rulings offer a fresh opportunity to assess what remains of the ATS and suggest an emerging circuit split.
- Jacobson Family Investments, Inc., et al., Plaintiffs, MDG 1994 Grat, LLC, Plaintiff-Respondent v. National Union Fire Insurance Company of Pittsburgh, PA, Defendant-Appellant, Continental Casualty Company, et al., Defendants, 601325/10
- 7-Eleven, Inc. v. Minhas, 11-CV-5455
- Acadia Realty Limited Partnership, Plaintiff-Respondent v. Benjamin O. Ringel, et al., Defendants. RCG LV Debt IV Non-REIT Assets Holdings, LLC, Proposed Intervenor-Appellant, 652054/13
- In re Denis M. Field, Petitioner-Appellant v. BDO USA, LLP, Respondent-Respondent, 600010/12