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  • $805 Million "Holder" Action
    Against Citigroup Dismissed

    Financial InstitutionsSecurities LitigationLitigation

    Paul, Weiss secured the dismissal with prejudice of an action in which entities controlled by a wealthy investor and his spouse sought to recover $805 million in alleged losses on their investments in Citigroup common stock. According to the complaint, plaintiffs developed a plan to sell their Citigroup shares in May 2007, when the actual value of the stock was allegedly $51.59 per share. Plaintiffs, however, allegedly decided not to proceed with the sale based on supposed misrepresentations that primarily concerned the value of Citigroup assets related to subprime mortgages. Plaintiffs asserted that they in fact sold their shares in 2009 at a price of $3.09 per share.

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  • Second Circuit Affirms Dismissal of
    Putative Class Action Against JP Morgan

    Financial InstitutionsSecurities LitigationLitigation

    Paul, Weiss obtained a significant victory on behalf of J.P. Morgan Chase & Co., J.P. Morgan Chase Bank, Inc. and J.P. Morgan Futures, Inc. (JPMorgan) in the U.S. Court of Appeals for the Second Circuit. The Second Circuit affirmed the district court's judgment dismissing a putative class action filed on behalf of all traders who purchased and sold NYMEX natural gas futures contracts during a period in 2006. The plaintiffs claimed that Amaranth, a hedge fund for which JPMorgan provided clearing broker services, manipulated natural gas futures prices during the period in 2006, and that JPMorgan had aided and abetted Amaranth's manipulation.

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  • All Claims Against The Bank
    of New York Mellon Dismissed

    Securities LitigationFinancial Institutions

    The firm obtained a substantial victory on behalf of Paul, Weiss client The Bank of New York Mellon, when the New York Appellate Division, First Department, dismissed all of the remaining claims asserted against BNYM in its capacity as indenture trustee for certain notes issued by the predecessor to LyondellBasell, the world's third largest chemical company. The noteholders, who sought approximately $1 billion in purported damages, claimed that BNYM had violated its duties as indenture trustee by allowing LyondellBasell to issue, in connection with Basell's acquisition of Lyondell, an additional $20 billion in debt senior to the notes. 

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  • Paul, Weiss Achieves Trial Victory for Aurora Commercial Corp.

    Financial InstitutionsLitigation

    Paul, Weiss achieved a major victory for our client Aurora Commercial Corp., formerly known as Aurora Bank, FSB (Aurora), when the District Court of Denver County, Colorado rejected all of the claims of plaintiff Allonhill, LLC (Allonhill), and ruled in Aurora's favor on its breach of contract and fraud counterclaims against Allonhill, awarding Aurora approximately $26 million, plus interest.

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  • Bank of America Wins Motions
    to Dismiss Derivative Actions

    Financial InstitutionsSecurities LitigationLitigation

    Paul, Weiss client Bank of America Corporation (BofA) and several of its directors and officers achieved a victory in the United States District Court, Southern District of New York. Judge P. Kevin Castel granted the defendants' motions to dismiss two derivative actions alleging, among other things, that BofA's directors and officers breached their fiduciary duties and were unjustly enriched in connection with BofA's 2008 acquisitions of Countrywide Financial Corporation and Merrill Lynch & Co.

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  • New York State Supreme Court
    Dismisses Claims Against UBS

    Financial InstitutionsSecurities LitigationLitigation

    New York State Supreme Court Justice Shirley Werner Kornreich issued a decision dismissing, with prejudice, common law fraud and other claims brought against Paul, Weiss client UBS Limited and other UBS entities. Plaintiffs, investors in several CDOs issued by UBS in 2007, alleged that UBS and other defendants designed the CDOs, comprised of residential mortgage-backed securities, for their own benefit in order to profit from the impending collapse of the subprime mortgage market. Plaintiffs further alleged that UBS, along with the collateral manager for one of the CDOs, failed to disclose the improper role of a CDO short investor in selecting assets for the CDO. 

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  • Citigroup Board Wins
    Dismissal of Derivative Lawsuit

    Financial InstitutionsSecurities LitigationLitigation

    Judge Thomas P. Griesa of the United States District Court for the Southern District of New York issued an order granting our motion to dismiss a shareholder derivative complaint filed against certain current and former members of Citigroup's Board. In the complaint, plaintiff alleged that Citigroup's directors breached their fiduciary duties in connection with Citigroup's processing of mortgage foreclosures, and that Citigroup suffered liability and reputational harm as a result.  Judge Griesa dismissed the complaint without prejudice.

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  • Citigroup Wins Dismissal of CDO Lawsuit

    Financial InstitutionsSecurities LitigationLitigation

    Judge Laura Taylor Swain of the United States District Court for the Southern District of New York granted our motion to dismiss a complaint filed against Citigroup by Woori Bank asserting claims arising out of its purchase of $95 million of collateralized debt obligations ("CDOs") backed by subprime residential mortgage-backed securities. In its complaint, Woori Bank alleged that Citigroup fraudulently and negligently misrepresented the quality of assets underlying the CDOs and the process of vetting and selecting assets. Judge Swain dismissed the complaint for failure to plead an actionable misrepresentation or omission under Fed. R. Civ. P. 9(b). 

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  • Paul, Weiss Obtains Victory for Citigroup

    ERISA, Pension & Benefits LitigationFinancial Institutions

    In an opinion written by Judge John Walker, Jr., a panel of the Second Circuit affirmed dismissal of a suit brought by employees of Citigroup over losses they incurred by investing their retirement funds in Citigroup stock. The Second Circuit became the sixth appellate court to hold that ERISA fiduciaries are entitled to a presumption of prudence regarding their decisions to continue to allow plan investments in employer stock. The Second Circuit also held that plan fiduciaries do not have an affirmative duty to disclose to plan participants non-public information regarding the expected performance of company stock.

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  • Paul, Weiss Achieves Significant
    Victory for JPMorgan

    Financial Institutions

    Justice O. Peter Sherwood of the New York Supreme Court granted summary judgment to our client, JPMorgan Chase & Co., dismissing the sole remaining claim asserted by Amaranth LLC, a hedge fund that spectacularly imploded in September 2006 after losing billions of dollars within a matter of weeks.

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