Barclays Engages Boies, Schiller & Flexner to Defend Against U.S
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THE BSF REPOrt SPRING 2013 BSF Wins Historic Verdict in Antitrust Case against Chinese Vitamin C Cartel In the first-ever antitrust trial against limit production. The companies’ Chinese companies held in the United main defense was an unusual one: States, Boies, Schiller & Flexner won that the Chinese government a $54.1 million verdict – subject to mandated their conduct. trebling -- on March 14, 2013, in the Eastern District of New York. The eight- As Mr. Isaacson told The Wall Street person jury deliberated for just half a Journal, “This verdict shows that day before finding the companies liable companies in China are going to for fixing prices and limiting supply of have to play by the same rules as vitamin C in the U.S. Later that day, everybody else.” Judge Cogan entered final judgment of William Isaacson $162.3 million in damages for the class The landmark decision comes after of American buyers and distributors BSF negotiated a settlement with represented by the Firm. one defendant, in May 2012, for million. $10.5 million. This marked the During opening arguments in this first time a Chinese company was The trial team was led by William historic nine-day trial, BSF partner called to task for U.S. civil antitrust Isaacson and included partners William Isaacson told the court that claims and the first settlement of its Tanya Chutkan and counsel the Chinese vitamin C manufacturers kind. Two more defendants settled Jennifer Milici. Partner Alanna “struck a blow at our free enterprise on the tail end of the trial, shortly Rutherford and senior attorney system” by colluding to fix prices and before closing arguments, for $22.5 Melissa Willett also contributed. Barclays Engages Boies, Schiller & Flexner to Defend Against U.S. LIBOR Class Actions At the fore- (EURIBOR). Ltd., et al. 12-3419 (filed April 30, front of liti- 2012)), and a securities fraud action gation relat- After settlements with British and pending before Judge Scheindlin in ing to the U.S. authorities, Barclays engaged the Southern District of New York London In- BSF to defend against follow-on (Gusinsky v. Barclays, PLC, 12-CV- terbank Of- lawsuits brought in the U.S., in- 5329 (S.D.N.Y.) (filed July 10, fered Rate cluding among other actions the 2012)). (LIBOR), more than twelve outstanding class Boies, Schill- actions relating to USD LIBOR The Firm previously handled a Jonathan Schiller er & Flexner that have been consolidated into closely-watched $13 billion case is represent- a Multi-District Litigation before (continued on page 10) ing Barclays in multiple class action Judge Buchwald of the Southern and direct action lawsuits brought in District of New York (In re Libor- INSIDE THIS ISSUE: the United States against the British Based Financial Instruments An- bank and other panel bank members titrust Litigation, 11-MD-02262 Litigation Highlights 1 in connection with their submissions (S.D.N.Y.)), an action regarding Corporate Highlights 6 to the bodies that set various inter- Yen LIBOR pending before Judge Honors & Distinctions 7 bank offered rates, such as LIBOR and Daniels in the Southern District of the Euro Interbank Offered Rate New York (Laydon v. Mizuho Bank, BSF In Brief 10 SPRING 2013 LITIGATION HIGHLIGHTS $25 Billion Class Action and Derivative Action Allowed to Proceed Against U.S. Government for 2008 AIG Takeover bailout. without just compensation. Starr brought the class action and In particular, Judge Wheeler found that derivative lawsuit seeking over the 79.9% of AIG’s equity (then valued $25 billion in damages against the by the government at $23 billion) that U.S. government resulting from the government obtained for $500,000 its use of insurance giant AIG to was not collateral for the government’s bail out other financial institu- loan to AIG and that the government did not have express authority or inci- tions in 2008 without providing David Boies dental powers justifying that acquisi- just compensation to AIG and tion. On July 2, 2012, Judge Thomas its shareholders for the assets that C. Wheeler denied the motion to were taken. Discovery has commenced and is pro- dismiss of defendant United States ceeding in that action, which is sched- of America in an action brought on Judge Wheeler found that the uled for trial in 2014. behalf of Starr International Com- Court had jurisdiction over those pany, Inc. by Boies, Schiller & Flex- claims, that Starr had standing The principal attorneys on the motion ner in the United States Court of to bring those claims, and that were Chairman David Boies; partners Federal Claims. The Court subse- Starr had adequately alleged its Robert Dwyer, Nicholas Gravante, quently certified two classes of AIG claims that the government had Jr., Hamish Hume, Samuel Kaplan, common shareholders on March taken property (including equity Duane Loft, Alanna Rutherford, and 11, 2013—an important step for interests, voting rights and other Robert Silver; counsel Eric Posner; and associates Julia Hamilton, Laura shareholders whose property was assets) from AIG and its share- Harris, Ilana Miller, Joshua Libling, taken and / or illegally exacted by holders (including Starr) either as and Luke Thara. the government as part of the 2008 an illegal exaction or as a taking SCOTUS Agrees to Hear Arguments in Historic Civil Rights Case for Same-Sex Marriage Equality On March 26 2013, the United eral Donald B. Verrilli, Jr. filed States Supreme Court will hear ar- an amicus brief on behalf of the gument in the landmark civil rights U.S. government on February case challenging California’s Prop- 28, 2013 in support of the case. osition 8, which stripped gays and The brief asserts that Proposition lesbians of the right to marry. The 8 violates the U.S. Constitution, case was brought by BSF Chair- a conclusion reached by judges at man David Boies and his one-time every level as this case has made its courtroom adversary, former Solic- way through the courts. itor General Theodore B. Olson on (L toR) David Boies and Theodore B. Olson behalf of the American Foundation In August 2010, Chief Judge for Equal Rights. Vaughn Walker of the Northern protection and due process. The ruling, District of California held that the which spanned 136 pages and included In a profound show of support for measure denied gays and lesbians 80 separate findings of fact, followed a marriage equality, Solicitor Gen- in California their rights to equal twelve-day trial in which Boies subjected (continued on page 9) Page 2 SPRING 2013 LITIGATION HIGHLIGHTS Boies, Schiller & Flexner Secures Dismissal of Complaint against BNP Paribas and Expands Case against Bank of America Boies, Schiller & Flexner has scored securities unit of BNP Paribas; this another significant victory for BNP complaint was dismissed in a 39- Paribas in its securities negligence page opinion by Judge Robert W. suit against Bank of America. Sweet of the U.S. District Court in Manhattan on June 5, 2012. BNP Paribas has alleged that Bank of America failed in its duty to safe- The Court also granted BNP Paribas guard more than $480.7 million of permission to expand its existing cash and mortgages securing BNP lawsuit—already in discovery—to Paribas’s investment in Ocala Fund- pursue additional claims against Robin Henry ing, LLC, a mortgage warehousing Bank of America for its role in the Robin Henry, Motty Shulman and facility. loss of collateral intended to secure Jack Wilson along with associates BNP Paribas’ investment. Paul Fattaruso, Nathan Holcomb Bank of America attempted to shift and James Ostaszewski. blame for BNP Paribas’s loss to the This case is being handled by partners $80 Million Partial Settlement Negotiated by Boies, Schiller & Flexner for Madoff Feeder Fund Investors administrator and custodian will be distributed to investors, with an for hedge funds; GlobeOp, additional $30 million held in escrow and also a fund administrator; distributed if not used to resolve other and PricewaterhouseCoopers claims against the defendants. Netherlands and Canada, who were auditors of the funds. On Led by partners David Barrett and February 25, 2013, the case took Stuart Singer, this legal team includes an important step forward when partners Sashi Bach Boruchow, Carlos Stuart Singer Judge Victor Marrero in New York Sires, Howard Vickery; counsel Eli federal court granted plaintiffs’ Glasser and Olav Haazen; associates On behalf of a class of investors motion for class certification. Adam Deckinger, Susan Klock, and in Fairfield Greenwich Group, Josh Sheptow. the largest “feeder fund” group BSF filed one of the first feeder fund suits over four years ago for the Madoff Ponzi scheme, on behalf of over 100 Fairfield Boies, Schiller & Flexner reached investors. By defeating motions a settlement in which individual to dismiss in significant part and Fairfield partners, includingundertaking extensive discovery as founding partners Walter Noel, co-lead counsel, BSF created the Jeffrey Tucker and Andresopportunity for this settlement. Piedrahita, will pay $80 million. Subject to approval by Judge The litigation is continuing against Marrero, damages of $50 million Sashi Bach Boruchow Citco Group, the world’s largest (less attorneys’ fees and expenses) Page 3 SPRING 2013 LITIGATION HIGHLIGHTS Argentine Bondholders See Early Success after Bringing Boies, Schiller & Flexner into Complex Debt Litigation behalf of holders of bonds issued BSF successfully moved for a by Argentina in exchange for $80 stay of the injunction pending billion in defaulted sovereign debt. decision by the Court of Appeals. The group, led by GramercyThe Exchange Bondholders Funds Management, entered previously agreed to accept less the litigation as an interested than 30 cents on the dollar of face non-party after an October 26, amount of their Argentine bonds, David Barrett 2012 ruling which approved in as part of an internationally- principle an injunction that could sanctioned restructuring of In a closely-watched international block Argentina from paying Argentina’s debt.