Litigation Wrap - Hughes Hubbard and Reed

Litigation Wrap
Third Quarter
Hughes Hubbard & Reed LLP
One Battery Park Plaza | New York, New York 10004-1482 | 212-837-6000
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3Q2014 Developments
$4.6 Billion Lehman Distribution
On Aug. 15, Lehman Trustee Jim Giddens
announced a $4.6 billion distribution to
unsecured general creditors including
former employees, pension funds, banks
and investment funds. Giddens settled
more than $1 billion in claims between
LBI and its Hong Kong and Singapore
affiliates in July and resolved several
hundred other claims during the quarter.
The HHR team included Jim Kobak,
Chris Kiplok, Michael Salzman, Jeffrey
Greilsheimer, Jason Benton and
Rob Funkhouser.
Sweeping Arbitration Victory
Seth Rothman, Kevin Clines and Savvas
Foukas won a sweeping victory for Sojitz
Aerospace America Corp. in a complex
arbitration brought by Goodrich Corp.
Sojitz America and its Japanese parent
facilitated an international transaction
between Goodrich and Toshiba Corp.
that ultimately collapsed, resulting in
litigation in both the U.S. and Japan.
Following three weeks of arbitration
hearings in New York, a unanimous
panel of three arbitrators rejected
Goodrich’s claims, granted Sojitz
America’s counterclaims, and awarded
Sojitz America costs and arbitrators’
Deloitte Dismissal
Bill Maguire and Savvas Foukas scored
a huge victory on July 21 when a U.S.
District Judge dismissed all claims
brought against client Deloitte & Touche
LLP by a group of investment funds
blaming Deloitte for tens of millions of
dollars in investor losses at ChinaCast
Education Corp.
ICSID Arbitration
Steve Hammond helped Türkiye Petrolleri
Anonim Ortaklığı (TPAO) successfully
resolve its dispute with the Republic of
Kazakhstan over hundreds of millions of
dollars of investments in the oil and gas
sector of Kazakhstan. TPAO brought its
claims in 2011 under the Energy Charter
Treaty and the Turkey-Kazakhstan
bilateral investment treaty.
Dewey Defense
In July, Ned Bassen and Katie Coleman
settled the clawback suit brought
against our client, former Dewey CFO
Joel Sanders, by the Dewey bankruptcy
trustee, which allowed Sanders’ defense
team to be exclusively devoted to a
criminal trial now scheduled for January
2015. Bassen and Coleman also won
dismissal of a suit brought against
Sanders by a former Dewey partner.
Energy Client Win
Chris Paparella, John Fellas, and Hagit
Elul were victorious in a suit brought by
investment advisory firm had breached
its investment advisory agreement as
well as its fiduciary duty and granted
our client the full amount of damages
requested plus interest, costs and
an Exxon Mobil affiliate against HHR
client WorleyParsons Ltd. when a New
York State Supreme Court ruled that
WorleyParsons could require arbitration
of Exxon’s claims despite an agreement
in which WorleyParsons submitted to
the jurisdiction of the New York courts.
They also persuaded the Court to fix
a defective arbitration clause. The
court dismissed Exxon’s complaint and
ordered it to arbitrate its claims with the
AAA’s International Centre for Dispute
On Aug. 1, Aviva Wernick won dismissal
of all claims brought against EQ Inc. and
its subsidiary CX Digital Media Inc. by
the trustee of XM Brands when a Florida
Federal Bankruptcy Court Judge granted
its motion to dismiss all claims against
EQ with prejudice for lack of personal
SEC Fraud Suit
Antitrust Settlement
for stock investor Michael Manis and
his companies on Aug. 12, when Little
convinced the SEC to drop its securities
fraud case against Manis and to settle
its alleged registration violation case for
5% of the $17 million the SEC claimed
Manis had made in illicit profits.
for Casella Waste Management that
ended a New York State investigation
of Casella’s alleged anti-competitive
practices and provided Casella more
reasonable terms than New York’s
Attorney General initially demanded.
Ed Little delivered an outstanding result
Investment Advisor Arbitration
On Aug. 7, Dan Weiner won a $25
million arbitration award for firm client
Lynn Gorguze, President and CEO
of Cameron Holdings, when a AAA
arbitrator determined that her longtime
EQ Inc. Dismissal
Bill Kolasky scored a favorable outcome
HHR Wins Legal 500 Arbitration Award
HHR won the 2014 Legal 500 U.S.
Award for “International Arbitration–
Team of the Year”— winning over a group
of finalists that included Arnold & Porter,
Chaffetz Lindsey, Curtis Mallet-Prevost,
and White & Case.