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 Dismissal with Prejudice of Securities Class Action Against Swiss Re
Yesterday, Paul, Weiss won a significant victory for Swiss Reinsurance Company, CFO George Quinn, and former CEO Jacques Aigrain when Judge John Koeltl of the U.S. District Court for the Southern District of New York granted our motion to dismiss with prejudice a securities class action pending against them.
The lawsuit was triggered by Swiss Re's writedown of CHF 1.2 billion on two credit default swaps the company had sold, which protected portfolios purportedly consisting largely of MBS, including subprime securities. Plaintiffs claimed that Swiss Re had artificially inflated its share price by making material misrepresentations regarding its exposure to subprime and RMBS, its risk management practices and controls, and its financial reporting.
In dismissing the action, Judge Koeltl held that plaintiffs' claim was barred because, under the recent Supreme Court decision of Morrison v. National Australia Bank, plaintiffs' purchases in the U.S. of Swiss Re stock on a European stock exchange, were not covered under section 10(b) of the Exchange Act. In addition, Judge Koeltl found that none of plaintiffs' allegations were material misstatements and that plaintiffs failed to allege with particularity any contrary information that rendered Swiss Re's statements reckless.
The Paul, Weiss team included litigation partner Dan Kramer, who argued the motion to dismiss; partners Mark Bergman, James Brochin and Charles Davidow.