When allegations of misconduct threaten a company's reputation and business and raise the spectre of government intervention, companies often turn to outside counsel to conduct an internal investigation. Handled successfully, this can help deter full-scale regulatory involvement and significantly limit a client's exposure to lawsuits. Many of the world's largest companies turn to us to handle their most sensitive and important internal investigations and to represent them before prosecutors and government regulators.
The World Bank Sanctions Board has determined that a Paul, Weiss public sector software company client is not subject to a period of debarment in connection with proceedings brought by the World Bank Vice Presidency for Integrity (INT), which had sought a three-year debarment.
- Financial Institutions
- Securities Litigation
- White Collar & Regulatory Defense
- Internal Investigations
Paul, Weiss client SAC Capital won a significant victory when Judge Victor Marrero of the United States District Court for the Southern District of New York dismissed civil RICO claims brought by a series of investors in two publicly traded companies, Elan Corporation and Wyeth. Plaintiffs sought over a billion dollars in trebled damages based on their allegations that SAC Capital violated the RICO statute through insider trading in shares of Elan and Wyeth from 2006 to 2008.
Judge Alison Nathan of the Southern District of New York dismissed with prejudice all direct, putative class action claims brought against Paul, Weiss client Philip Falcone and the general partner and management entities for six private investment funds operated by Paul, Weiss client Harbinger Capital Partners.
The New York State Supreme Court Appellate Division, Second Department, issued a decision affirming the dismissal with prejudice of a shareholder derivative complaint brought against Paul, Weiss client FalconStor Software, Inc. Plaintiffs alleged that a bribery scheme took place under the direction and watch of FalconStor's board of directors, and that the directors breached their fiduciary duties by approving certain stock option grants that were used in the scheme.
As reported in The New York Times and other media outlets, the United States Court of Appeals for the Second Circuit overturned the government's insider trading convictions against two former hedge fund traders, Todd Newman and Anthony Chiasson, in a 28-page decision that could have a significant impact on the future of insider trading law.
Judge Lorna G. Schofield dismissed a securities action lawsuit filed in the Southern District of New York against Paul, Weiss client Turquoise Hill Resources (TRQ) and certain of its officers and directors. The lawsuit sought to recover damages from TRQ, a mining company with a copper and gold mine in Mongolia, based on alleged misstatements about TRQ's financial performance arising out of a change to revenue recognition practices by its partially owned subsidiary, South Gobi Resources, Ltd., which operates a coal mine in Mongolia.
Paul, Weiss client Bank of America Corporation (BofA) and several of its directors and officers achieved a victory in the United States Court of Appeals for the Second Circuit. On appeal, the Second Circuit affirmed the decision by Judge P. Kevin Castel of the Southern District of New York approving BofA's $2.425 billion settlement of a consolidated class action asserting claims related to BofA's 2008 acquisition of Merrill Lynch & Co.