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Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.

Citigroup Wins Anti-Suit Injunction Precluding Overseas Enforcement of Vacated Arbitration Award

Justice Charles Ramos of the New York Supreme Court's Commercial Division granted a motion for a foreign anti-suit injunction in favor of Paul, Weiss client Citigroup Global Markets, Inc. The case arose out of a FINRA arbitration initiated against Citi by a former customer, John Fiorilla, stemming from the 2008 market collapse. Before the beginning of arbitral hearings in May 2012, Fiorilla settled his claims against Citi for $800,000. Two weeks later, Fiorilla reneged on the settlement and asked FINRA to continue with the arbitration which, over Citi's objection, it did, later awarding Fiorilla $11,000,000. Paul, Weiss was brought in to attempt to have the arbitration award vacated. Following argument before Justice Ramos by Gerry Harper in December 2013, the award was vacated and the settlement agreement was enforced, a decision affirmed by the First Department and undisturbed by the Court of Appeals.

In early 2016, Fiorilla obtained recognition of the vacated arbitration award in an ex parte proceeding in French court, in which he did not tell the French courts that the award had been vacated in the United States. In September, Fiorilla began serving seizure writs on Citi's French affiliates and their counterparties seeking to collect on the French judgment. Fiorilla also made a motion in New York to reverse the prior decision throwing out the arbitration award. Paul, Weiss obtained a temporary restraining order from Justice Ramos precluding further attempts to seize Citi assets and, on October 11, Justice Ramos denied Fiorilla's motion to vacate the prior judgment and granted Citi's cross-motion for an injunction barring Fiorilla from attempting to enforce the vacated award overseas. 

Litigation partner Audra Soloway argued the TRO application, the opposition to Fiorilla's motion to reverse the prior judgment, and Citi's cross-motion for an anti-suit injunction. Of counsel Gerard Harper argued the original petition to vacate and the appeal of the decision to vacate the award. The Paul, Weiss team also included litigation partner Bruce Birenboim.

October 11, 2016

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