Daily Dicta: For Kirkland Team, This Trial Totally Sucked (But Not in the Way You Think
Advertisements are fleeting. Do you really want to go to trial four years down the road over a misleading claim? If you're vacuum cleaner maker Dyson Inc., the answer is yes.
June 13, 2018 at 02:03 PM
6 minute read
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![Jenna Greene](https://images.law.com/contrib/content/uploads/sites/407/2017/10/DailyDicta-1-197x300.jpg)
Shout-Out: Cravath's $11B Save for Credit Suisse
A team from Cravath, Swaine & Moore led by partner Richard W. Clary scored a major win for Credit Suisse—and the rest of the banking industry—on Tuesday before the New York State Court of Appeals, in a decision that sharply curtails the statute of limitations for certain fraud cases. The allegations are familiar: The New York Attorney General sued Credit Suisse in 2012, alleging that the bank committed fraudulent and deceptive acts in connection with the creation and sale of residential mortgage-backed securities in 2006 and 2007. According to the AG's office, Credit Suisse led investors to believe that they had “carefully evaluated–and would continue to monitor” the quality of loans underlying the RMBS. Or not. In reality, many of the loans were flawed, and the shoddy securities helped trigger the 2008 financial crisis. The state sought $11 billion in damages. But did the AGs office wait too long to sue under New York's anti-fraud law, the Martin Act? The state argued that its suit is timely because the relevant statute of limitations is six years, but the Cravath team countered it's actually only three years. In a split opinion , New York's highest court ruled the claims are time-barred, siding with Cravath in ruling that the statute of limitations is three years. Oddly, this exact issue had not come up before. “Despite the scope and detail of the statutory scheme, there is no provision stating the applicable statute of limitations and, although the Martin Act is nearly a century old, we have never had occasion to consider the issue,” wrote Chief Judge Janet DiFiore. For more on the case, see coverage by my colleagues at The New York Law Journal: NY Court of Appeals Dismisses AG's Martin Act Claims Against Credit SuisseWhat I'm Reading
READ THE DECISION: Judge OKs AT&T-Time Warner's $85B Merger Take a bow, Daniel Petrocelli. Merrill Lynch to Pay $15.7 Million, Enhance Compliance After Misleading Customers “Merrill Lynch failed in its obligation to supervise traders who allegedly used their access to market information to take advantage of the bank's own customers.” Gorsuch, Embracing Originalism, Mustered No Support in Solo Dissent Poor Neil Gorsuch. Not even the court's most steadfast originalist, Justice Clarence Thomas, would join his dissent. Judge Forrest, Again, Orders Subpoena Compliance in Trump Fundraiser's Qatari Suit The suit is brought by Boies Schiller client Elliott Broidy, the GOP fundraiser best known for hiring Michael Cohen to pay off a Playboy Playmate. Lawyer's Conflict of Interest in Campus Sex Assault Case Leads to One-Year Suspension Things you can't do: Represent a group of sexual assault victims, and then represent a man that one of them accused of sexual assault in a defamation suit. South Florida Law Firm That Served Drinks to Alcoholic Employee Isn't Responsible for Her Death Wait what? The firm allegedly served alcohol during work hours and “encouraged employees to drink … to entice them to work additional hours and produce more work product.”This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
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