L-R: Richard A. Spehr of Mayer Brown, Elaine J. Goldenberg of Munger, Tolles & Olson, John Gleeson of Debevoise & Plimpton. Courtesy photos Litigators of the Week: The Eighth Circuit Knocks Out a $564M Verdict Against BMO in Ponzi Case
Debevoise's John Gleeson, Mayer Brown's Richard Spehr and Elaine Goldenberg of Munger Tolles helped convince the Eighth Circuit that the bankruptcy trustee of a company run by a convicted Minnesota Ponzi schemer couldn't pursue aiding and abetting claims against the bank because the company bore responsibility for its own injury.
September 20, 2024 at 07:30 AM
10 minute read
Financial Services and Banking
In November 2022, BMO Bank was hit with the largest verdict in Minnesota history. After a four-week trial, federal jurors handed down a $564 million verdict finding the bank's predecessors aided and abetted Ponzi schemer Tom Petters and his accomplices in laundering billions in proceeds. Last year, U.S. District Judge Wilhelmina Wright in St. Paul tacked on pre- and post-judgment interest to bring the tally to more than $1 billion.
The bank appealed and oral arguments at the Eighth Circuit in May featured a match-up of former U.S. Solicitors General: Don Verrilli of Munger, Tolles & Olson argued for BMO and Paul Clement of Clement & Murphy argued for Douglas Kelley, the bankruptcy trustee who has been pursuing claims against the bank.
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