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.
Paul, Weiss Wins Affirmance in First Department
- Client News
- December 12, 2017
Practices
Paul, Weiss secured an affirmance of the dismissal of a New York state court action for breach of fiduciary duty against Silverpeak Real Estate Partners LP, which had been filed by investors who purchased Lehman real estate assets that later lost value.
The New York Appellate Division, First Department, unanimously affirmed the dismissal of an action filed by several limited partners in a partnership originally created by Lehman in 2007 to invest in commercial real estate. In the wake of the Lehman bankruptcy, Silverpeak, whose principals were all former Lehman executives who had formed and run the original investment partnership, was approved through a consent solicitation to become the new general partner of the partnership under a new investment management contract.
The investors’ sprawling complaint alleged 16 causes of action, including that the original investments in 2007 had been procured by fraud, that the consent solicitation was itself both fraudulent and technically defective, that those limited partners who had defaulted on their investment obligations were being unfairly treated and that the new management fees approved by a majority of limited partners were unconscionable and void. In a comprehensive opinion upheld by the Appellate Division, the trial court considered and rejected all 16 causes of action.
The Paul, Weiss team included litigation partner Richard Rosen, who argued the appeal, and counsel Robert Kravitz.