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Southern District of New York Allows Trustee’s Aiding and Abetting Claim Against Citibank to Proceed

On November 6, 2023, the U.S. District Court for the Southern District of New York denied in part and granted in part Citibank’s motions to dismiss claims for allegedly aiding and abetting an accountholder’s multi-million...more

U.S. Bankruptcy Court for the Southern District of Texas Denies Motion for Summary Judgment in Case Challenging “Uptier”...

On January 14, 2024, the U.S. Bankruptcy Court for the Southern District of Texas largely denied cross motions for summary judgment on aggrieved noteholders’ claims arising from a so-called “uptier” transaction. In 2019,...more

Bankruptcy Court Determines that Dividend Payments Permitted Under Subordinated Loan Agreement Are Not Fraudulent Conveyances

On January 18, 2024, the U.S. Bankruptcy Court for District of South Carolina entered judgment, after a bench trial, in favor of minority shareholders of a debtor whose liquidating trust had sued to recover dividend payments...more

New York Trial Court Holds that Strong Public Policy Commitment to Fair Lending Practices Defeats Loan Agreement’s Choice of Law...

On September 5, 2023, a New York state court invalidated a loan agreement’s choice of law provision, ruling that the loan agreement was void and depriving the lender of both principal and interest payments. The lender, Samson...more

Kansas Federal Court Allows Developers’ Tort and Contract Claims to Proceed Against Bond Trustee

On September 13, 2023, the U.S. District Court for the District of Kansas granted in part and denied in part UMB Bank’s motion to dismiss counterclaims for tortious interference, breach of contract, and breach of the duty of...more

Aiding and Abetting Breach of Fiduciary Duty Claims Against Lender Survive Motion to Dismiss

On April 26, 2023, the U.S. Bankruptcy Court for the District of Delaware denied in part and granted in part motions to dismiss a chapter 7 trustee’s breach of fiduciary duty and aiding and abetting claims. The defendants...more

The Texas Court of Appeals Reverses Lender/Investor’s Damages Award Against Lender

On February 14, 2023, the Texas Court of Appeals reversed awards totaling $63 million entered against Credit Suisse after a jury trial and bench trial for Claymore Holdings, LLC, the assignee of a lender-investor. The case...more

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