Our Experience

Ongoing representation of Chapter 7 Trustee, including (i) conducting a full investigation of the financial affairs and collapse of Bancorp; (ii) defending Bancorp in government enforcement and litigation matters; and (iii) collecting Bancorp's property and assets, including the prosecution or potential prosecution of claims against the various entities and individuals. The representation, which has served as an industry blueprint for others of its kind, has included, among other proceedings, an ongoing litigation against the FDIC seeking over $750 million in damages, including certain tax refunds of over $50 million; an ongoing dispute with the FDIC concerning the sale of certain assets valued at up to $35 million; litigation against certain former directors and officers of the Debtor seeking damages in excess of $350 million; and an ongoing dispute against certain third party professionals valued at up to $200 million. 

Notably, on behalf of the Trustee, the firm and the Trustee's other counsel negotiated through mediation with the former directors and officers a $35 million settlement of all claims in the fiduciary duty case. In the settlement, the defendants assigned their rights to pursue claims against the insurers for coverage of the settlement amount and for bad faith. Before settlement, the firm, on behalf of the Trustee, prevailed (i) in preventing the former directors and officers as well as FDIC from withdrawing the reference of his over $350 million fiduciary duty case from the Bankruptcy Court; and (ii) in defeating motions to dismiss filed by the Defendants and the FDIC. In doing so, the Trustee has established new, or at least clarified extremely limited, precedent in at least the following areas of law: (i) the extent to which thrift holding companies must act as a so-called "source of strength" for their subsidiary banks; and (ii) the scope of a Trustee's standing vis-a-vis the FDIC under FIRREA to advance breach of fiduciary duty claims. Also of note, the firm and the Trustee's other counsel obtained a report and recommendation from the Bankruptcy Court concluding on summary judgement that certain tax refunds of over $50 million are property of the bankruptcy estate.