RCT Settles $250 Million Lake Las Vegas Lawsuit Against CBRE
RCT has settled on confidential terms a lawsuit in Dallas state court against CBRE, Inc. The lawsuit alleged that CBRE issued a fraudulent or negligent appraisal that caused a group of funds to invest and lose more than $250 million in a $540 million refinancing loan made to the developers of the Lake Las Vegas master-planned residential and resort community in Nevada.
RCT Sues Former Managers of the AJW Funds
RCT filed suit against Corey Ribotsky and The NIR Group, LLC in New York Supreme Court on behalf of the Joint Official Liquidators of the AJW family of funds alleging fraud and breaches of fiduciary duty against the former managers of the AJW funds. The lawsuit alleges defendants artificially inflated the value of the AJW funds, which once reported assets under management of $800 million, for the purpose of collecting tens of millions of dollars in unjustified management and performance fees.
RCT Sues Bronson Over AJW Notes
On behalf of the Joint Official Liquidators of the AJW Funds, RCT has sued Edward Bronson and several of his companies to collect more than $85 million owed under promissory notes and personal guaranties. Former management of the AJW Funds sold convertible debentures to Bronson’s companies in return for the notes, which were never repaid. RCT moved for immediate summary judgment on the notes and guaranties in New York Supreme Court.
RCT Files Lawsuit against Astrotech
RCT has filed suit against T. Boone Pickens III, CEO of Austin-based Astrotech Corporation, and the company's board of directors. The derivative lawsuit alleges that Astrotech's staggering 89 percent decline in share value is attributable to Pickens's mismanagement and self-dealing, and seeks to hold Pickens and his hand-picked board personally responsible.
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RCT Retained by Chapter 7 Trustee in Securities Firm Suit
RCT and its co-counsel, Fox Rothschild have filed a lawsuit in the S.D.N.Y. on behalf of Yann Geron, as chapter 7 trustee of Pali Capital and Pali Holdings. Prior to its liquidation, Pali Capital was known as a highly profitable securities firm. The suit seeks damages from Pali's former directors and officers for breaches of fiduciary duty leading to the ultimate demise of the company as well as recovery of fraudulent conveyances and on a note.
RCT Obtains Chapter 15 Recognition for AJW Funds
Judge Alan Trust of the E.D.N.Y. granted foreign main recognition to the Joint Official Liquidators of the AJW family of funds. The AJW funds were Cayman Islands exempted limited liability funds that invested in PIPES. The Court found that the center of main interest of the funds was in the Cayman Islands and that the Official Liquidators should be recognized so that they could commence actions in the U.S.
RCT's representation of Agape Trustee draws praise from Court
RCT sued MF Global, Inc. for fraudulent transfers of $27 million in the Agape bankruptcy. After MF Global, Inc. sought bankruptcy protection, Agape's lawsuit was eventually transformed into a $15 million proof of claim, which the Agape Trustee auctioned for $13.5M. EDNY District Judge Eisenberg granted RCT's subsequent fee application, saying that RCT had "done an excellent job" and could "be proud of the work you've done."
RCT Obtains $750,000 Judgment Against Blues Traveler’s Former Manager
RCT represented the band Blues Traveler in a breach of fiduciary duty action against its former manager in the California Superior Court. The suit alleged that the former manager mismanaged Blues Traveler’s finances and misrepresented those finances to the band in order to hide his mismanagement. In January 2013, RCT obtained a judgment against the former manager, awarding Blues Traveler $750,000.
RCT wins 5th Circuit appeal and obtains rare litigation injunction.
The 5th Circuit affirmed a series of summary judgment rulings arising out of multi-million dollar conversion claims asserted against RCT’s client after a foreclosure sale. At the same time, on RCT’s motion, the Fifth Circuit issued monetary sanctions and a rare litigation injunction against the principal of RCT’s opponent based on arguments made in a proposed amicus filing.
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Cayman Grand Court Authorizes the AJW JOls to Retain RCT
On December 24th, the Grand Court of the Cayman Islands authorized the JOLs of four offshore AJW Funds to hire RCT to pursue third-party litigation claims. Separately, the JOLs also act as liquidators for 6 onshore funds. The AJW funds were a failed PIPE investment fund that once had a NAV in excess of $800 million that has turned out to be almost entirely worthless. RCT is investigating claims against insiders and third-party service providers.
RCT Files Lawsuit Against Shakira
RCT has filed suit against international pop-star, Shakira, on behalf of her former business partner, Antonio de la Rúa, in New York Supreme Court claiming damages in excess of $100 million. The lawsuit asserts multiple causes of actions including breach of partnership agreement, breach of contract, quantum meruit, and breach of fiduciary duty related to Shakira's wrongful retention of de la Rúa's partnership distributions and ownership interests in the businesses they created.
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RCT Settles $95 Million Lawsuit Against Orrick
RCT has settled on confidential terms a legal malpractice lawsuit brought by a group of funds against Orrick Herrington & Sutcliffe LLP. The lawsuit sought damages of $95 million for Orrick's failure to advise the funds that their extension agreements with Royal Bank of Scotland, PLC allowed the bank to unilaterally terminate a proposed €400 million CLO transaction.
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RCT Wins Important LSTA Ruling in the Fifth Circuit
RCT obtained a ruling in the U.S. Court of Appeals for the Fifth Circuit that reversed a federal district court's dismissal of a breach of contract claim brought by Highland Capital Management, LP against Bank of America, NA. The central issue is whether the parties' oral agreement to trade bank debtwas binding under the Loan Syndications and Trading Association Standard Terms and Conditions.
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RCT Files Breach of Contract Lawsuit Against KeyCorp
RCT has filed a lawsuit in federal court in Texas against KeyCorp on behalf of a former employee for breach of contract and fraudulent inducement. The lawsuit alleges KeyCorp failed to pay the employee a multi-million dollar bonus contractually owed in connection with the sale of the former asset manager, Austin Capital Management.
RCT Wins Important California Trust Fund Doctrine Ruling
The U.S. District Court for the Northern District of California denied a motion by former directors and officers of Asyst Technologies to dismiss breach of fiduciary duty claims asserted by RCT's client, the trustee of the Asyst Technologies Liquidation Trust. In a matter of first impression under California law, the court ruled that directors and officers can be held liable for a breach of fiduciary duty for authorizing a payment by an insolvent company on an existing contract. Preferential payments can give rise to D&O liability in California.
RCT Settles Fraudulent Transfer Claim
RCT has settled several fraudulent transfer claims it is pursuing on behalf of FTI Consulting, Inc., trustee to the Centaur LLC Litigation Trust. Centaur LLC and its subsidiaries, some of the country's leading horse racing, off-track betting, and casino operators, filed for bankruptcy in 2009 and 2010. The lawsuits seek to recover fraudulent transfers totaling over $40 million that were made in connection with the development of a race track and casino in Pennsylvania. RCT recently resolved one such claim, brought in the Delaware bankruptcy court, for $3.7 million.
R. Adam Swick Joins Reid Collins & Tsai LLP
Prior to joining RCT's Austin office, Adam was an attorney at international law firms Baker & McKenzie, Greenberg Traurig, and King & Spalding. He has broad experience in bankruptcy and litigation, specializing in international insolvencies and securities litigation. He has been published and quoted multiple times regarding fiduciary duty and fraud issues. He also was the salutatorian of his law school class.
RCT Hired to Represent American Pegasus Liquidators
The Joint Liquidators of American Pegasus SPC have engaged RCT to investigate and pursue claims arising out of the collapse of a $120 million Cayman hedge fund.
Chun T. Wright Joins Reid Collins & Tsai LLP
Joining as Of Counsel to the Firm, Ms. Wright's practice focuses on global intellectual property enforcement, copyright and trademark law, Internet and technology issues, money laundering and litigation.
RCT Hired to Represent Monkton Insurance Liquidators
The Joint Liquidators of Monkton Insurance Services Ltd. have engaged RCT as special counsel to pursue claims arising out of the collapse of a Cayman based manager of captive insurance companies.
Jeffrey Gross Joins Reid Collins & Tsai LLP
Jeffrey Gross has joined RCT, in its New York office, as Of Counsel to the firm. Jeff has represented clients in a wide variety of high-stakes, complex commercial litigation through trial. He has represented clients in diverse matters and industries, including cases arising from financial frauds, business and partnership disputes, technology and intellectual property matters, and employment matters.
RCT Attorney Named 2012 Texas Super Lawyer
Texas Monthly has named RCT partner William T. Reid IV as a 2012 Texas Super Lawyer. No more than 5% of Texas attorneys are recognized as Super Lawyers.
RCT Attorneys Named 2012 Texas Rising Stars
Texas Monthly has named RCT partners Jason Collins and Lisa Tsai as 2012 Texas Rising Stars. No more than 2.5% of Texas attorneys are selected as Rising Stars.
RCT Files $48 Million Lawsuit Against Peregrine Financial Group, Inc.
RCT has filed a lawsuit against Peregrine Financial Group, Inc. in U.S. District Court in Minnesota on behalf of R.J. Zayed, in his capacity as the court-appointed receiver for the estates of Trevor Cook and other individuals and entities involved in a $190 million Ponzi scheme orchestrated by Cook. The lawsuit seeks to recover fraudulent transfers in excess of $48 million.
Prior results do not guarantee a similar outcome.
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