News

RCT BRINGS CLASS ACTION AGAINST ADVOCARE

Reid Collins Tsai has filed a class action lawsuit alleging an over $100 million fraud against Advocare International, LP and its high-level promotors. Advocare is a company that sells shakes, nutritional supplements, and powdered energy drinks. The lawsuit alleges that Advocare operates an illegal pyramid scheme by focusing not on selling products to retail customers, but on endlessly recruiting participants who purchase Advocare products at wholesale prices on an ongoing basis in exchange for the right to receive compensation for recruiting……
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Plaintiffs Firm Touts Texas-Sized Bonuses to Top Cravath

Reid Collins & Tsai, a small trial firm based in Austin, has paid merit bonuses to associates and junior partners ranging up to $229,000 in 2016, exceeding both the big-firm market rate for year-end bonuses set by Cravath, Swaine & Moore and the higher bonuses paid by another Texas litigation firm, Susman Godfrey.
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RCT Named as 2016 Elite Trial Lawyers by National Law Journal

The National Law Journal has selected RCT as 2016 Elite Trial Lawyers in the category of financial institutions litigation. Each year, the NLJ recognizes law firms that achieved high-dollar recoveries for their clients and performed the most creative and significant plaintiff’s work. RCT is proud to be honored among 35 law firms in the country across nine separate categories of plaintiff’s work. To qualify, each law firm was required to have at least one significant win in the prior year and possess an impressive track record of wins……
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ABI Journal Publishes Article by RCT Partners

The ABI Journal recently published the article, Circuit Split Deepens on Scope of § 546(e) by Recognizing Limits on the Application of the Safe Harbor, written by RCT partners Josh Bruckerhoff and Greg Schwegmann. The article describes RCT’s recent victory before the Seventh Circuit Court of Appeals in which the Seventh Circuit held that the § 546(e) safe harbor only applies where the debtor or the transferee-defendant is one of protected entities listed in the statute. …
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RCT OBTAINS $212 MILLION JUDGMENT ON BEHALF OF INVESTMENT FUNDS

On August 29, 2016, RCT won a $212 million judgment on behalf of four offshore investment funds and a Massachusetts pension fund against Alphonse Fletcher Jr. and Fletcher Asset Management Co. in New York State Supreme Court. RCT’s clients asserted contract and various tort claims against Mr. Fletcher and his wholly owned management company for their mismanagement of the offshore funds.

RCT Wins Landmark Bankruptcy Decision in the Seventh Circuit

The Seventh Circuit overturned the dismissal of a $16.5 million fraudulent-transfer action under section 546(e) of the Bankruptcy Code in FTI Consulting v. Merit Management. The Seventh Circuit rejected the opinions of five other Circuit Courts of Appeal to hold that the section 546(e) safe harbor only applies where the debtor or the transferee-defendant is one of protected entities listed in the statute. This opinion opens additional avenues in the Seventh Circuit for trustees to seek recoveries on behalf of creditors. RCT represents FTI,……
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Law360: Trial Pros: Reid Collins’ Bill Reid (Q & A)

William T. Reid IV is a founding member of Reid Collins & Tsai LLP, which is a 28-lawyer contingency fee commercial plaintiff’s trial firm. Reid has tried a wide range of cases to verdict before judges and juries over the course of his 24-year legal career. From 1997-2000, Bill served an assistant U.S. attorney general, where he focused on complex drug and corruption prosecutions, trying 25 cases to verdict (and getting 24 convictions). Since returning to private practice, Reid has made the NLJ top-100 jury verdicts for his plaintiff clients……
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RCT Partner Speaks at ABI’s Annual Spring Meeting

Eric Madden recently spoke at the Annual Spring Meeting of the American Bankruptcy Institute in Washington, DC. He spoke as part of a panel presentation, along with a senior bankruptcy judge and a long-time bankruptcy mediator, entitled “War and Peace: Recent Trends in Bankruptcy Litigation and Mediation.” The conference was attended by over 1,000 attorneys, financial advisors, and other professionals from around the country.…
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RCT Named to 2016 National Law Journal Litigation Boutiques Hot List

On February 8, 2016, the National Law Journal named RCT to the 2016 Litigation Boutiques Hot List. Each year, the NLJ recognizes the 10 best litigation boutiques in the country with up to 50 lawyers who made standout accomplishments in the prior year, either by securing a key monetary victory or establishing important precedent at the trial or appellate level. …
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RCT Wins First Department Appeal Against Marcum

On January 28, 2016, the Appellate Division, First Department, ruled in favor of RCT’s clients, the Joint Official Liquidators of the AJW Offshore Funds. The JOLs sued Marcum for $25 million in connection with Marcum’s role as the funds’ auditor. The First Department held that Marcum could not rule out the application of the “adverse interest” exception to the defense of in pari delicto, and that the AJW Offshore Funds had successfully pleaded that their claims were timely.

RCT Partner Honored as 2016 Pathfinder by TCWLA

On January 20, 2016, Lisa Tsai was honored as a 2016 Pathfinder by the Travis County Women Lawyers’ Association.  Each year, the TCWLA selects and honors women lawyers who are “role models and trailblazers” in the legal profession.  At the awards luncheon, Lisa encouraged young women lawyers to “stay in the game.”

RCT Wins Appeal in $350 Million Lawsuit Against Credit Suisse

On December 22, 2015, the New York Appellate Division, First Department, revived $350 million in fraud claims brought by RCT’s clients, a group of funds that invested in five Credit Suisse-arranged real estate loans to the developers of Ginn Clubs & Resorts, Park Highlands, Rhodes Homes, Turtle Bay Resort, and Yellowstone Mountain Club. In overturning the lower court’s dismissal, the First Department held that the funds had adequately pleaded that Credit Suisse committed fraud by causing appraisers to issue inflated appraisals of the……
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RCT settles $36 million fraudulent transfer case against Barclays

In December 2015, the Grand Court of the Cayman Islands approved a confidential settlement between ICP Strategic Credit Income Master Fund, Ltd. and Barclays Bank PLC in connection with a $36 million fraudulent transfer action filed by RCT on behalf of the ICP Funds against Barclays in New York bankruptcy court.

RCT Partner Speaks at ABI’s Winter Leadership Conference

Eric Madden recently spoke at the Winter Leadership Conference hosted by the American Bankruptcy Institute.  He spoke as part of a panel presentation entitled “A Road to Recovery:  How to Navigate the Twists and Turns of Insider Litigation,” which focused on D&O litigation in the context of a bankruptcy case.

RCT Defeats Challenge to $50 Million Action

On September 30, 2015, the U.S. District Court for the Eastern District of New York ruled in favor of RCT’s client, Neogenix Oncology Inc., by denying six motions to dismiss Neogenix’s $50 million lawsuit against its former officers, directors, and outside counsel for breaches of fiduciary duty, malpractice, and fraud. Once a promising biotechnology company developing genetically engineered cancer treatments, Neogenix is now in bankruptcy and pursuing claims against those who caused its downfall through the sale of securities by……
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RCT Wins $287.5 Million Judgment Against Credit Suisse

On September 4, 2015, following a jury trial and a bench trial, a Texas state court entered a judgment for $287.5 million in favor of RCT’s client, an affiliate of Highland Capital Management, LP, against Credit Suisse AG, Cayman Islands Branch, and Credit Suisse Securities (USA), LLC.  More than two years ago, RCT, on behalf of a group of Highland-managed funds, brought claims against Credit Suisse for fraud and breach of contract in connection with a grossly inflated appraisal of the collateral supporting a $540 million loan to the……
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RCT Lawyers Named to Best Lawyers in America

Bill Reid and Eric Madden were recently selected for inclusion in The Best Lawyers in America® for 2016.  Selection to this group is based on an exhaustive peer-review evaluation.  The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. This recognition follows other professional accolades that RCT has received this year, including being named as a “Litigation……
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RCT OBTAINS RECOGNITION FOR ONE OF THE LARGEST CHAPTER 15 CASES

On July 17, 2015, in one of the largest Chapter 15 cases, the United States Bankruptcy Court for the Southern District of New York recognized Saad Investments Co. Ltd.’s insolvency proceeding in the Cayman Islands as a foreign main proceeding.  SICL is the main holding company of a group of Saad entities controlled by Maan Al-Sanea, a Saudi Arabian billionaire once ranked by Forbes magazine as the world’s 62nd richest person.…
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RCT Secures $110 Million Judgment on Appeal over AJW Notes

On behalf of the Joint Official Liquidators of the AJW Funds, New York’s Appellate Division, Second Department, ruled that the Liquidators can collect more than $110 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. The appellate court reversed the trial court’s finding that there were factual issues concerning the amount of damages owed.

Tibanne, Parent of Bitcoin Company MtGox Granted Recognition of Its Japanese Proceeding

On April 2, 2015, the United States Bankruptcy Court for the Southern District of New York granted foreign main recognition under Chapter 15 of the Bankruptcy Code of the Tibanne Co., Ltd bankruptcy proceeding pending in Tokyo, Japan.  RCT represented Taro Awataguchi, the Trustee of Tibanne in his effort to obtain recognition. Tibanne is the parent company of MtGox, a company that reportedly lost over 750,000 customer bitcoins worth in excess of $400 million.

State of Tennessee Intervenes in $140 Million Qui Tam Suit and Retains RCT

On February 6, 2015, the State of Tennessee’s Consolidated Retirement System formally intervened in a $140 million suit filed by RCT on behalf of relator, Integra REC LLC, against numerous investment banks, including Merrill Lynch, Citigroup, Royal Bank of Scotland, and Credit Suisse, for financial fraud in connection with knowingly misrepresented residential mortgage-backed securities purchased by the state’s retirement system. In connection with its intervention, the state has retained RCT to prosecute the case.

RCT Brings Class Action Against Pyramid Scheme

MXI is a company that sells supposed “healthy” chocolate products, including chocolate skin care products, through the brand Xocai (pronounced “sho-sigh”).  RCT has filed a class action alleging that MXI is a scam that operates as an illegal pyramid scheme by focusing not on selling chocolate products to retail customers, but on endlessly recruiting participants to commit to purchasing MXI chocolate at wholesale prices on an ongoing basis in exchange for the right to receive compensation for recruiting other participants to……
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Thelen Partners Found Liable for Claw-Back Payments

In accordance with a Memorandum Opinion issued in November 2014, the Bankruptcy Court for the Southern District of New York ruled in favor of RCT's client on claw-back actions commenced against former partners of Thelen LLP. The ruling found that former partners are liable for excess draw payments. Yann Geron, the chapter 7 trustee of Thelen LLP tapped RCT to handle 76 of the former partner actions, representing those partners who were hold outs and refused to participate in an earlier settlement. RCT settled most of the actions and proceeded……
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D&O Action in Empire Broker-Dealer Case Settled

RCT obtained approval of a settlement on behalf of Deborah Piazza, the chapter 7 trustee of Empire Financial Group, Inc. resolving actions against former directors and officers. Empire was a broker dealer and a former subsidiary of Jesup & LaMont Inc. Both Empire and Jesup had cases pending in the Bankruptcy Court for the Southern District of New York where the settlement was approved.

RCT WINS TENTH CIRCUIT APPEAL

On November 13, 2014, RCT prevailed against an international insurance company in an appeal to the U.S. Court of Appeals for the Tenth Circuit concerning a $112 million abusive tax shelter. RCT convinced the court that the insurance company’s attempt to use federal interpleader was—as the court concluded—a “thinly veiled attempt to cap its potential liability” to RCT’s clients. In obtaining this favorable ruling, RCT successfully distinguished two prior Tenth Circuit cases involving similar facts that have been binding precedent……
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RCT CLIENT SETTLES CLAWBACK ACTION FOR $32.2 MILLION

On October 15, 2014, RCT client Sheila M. Gowan, Post-confirmation Plan Administrator for Dreier LLP, settled her clawback action against the Westford family of hedge funds for $32.2 million. The settlement, which is still subject to Bankruptcy Court approval, ends the last in a series of litigations Ms. Gowan brought against hedge funds that had invested in a massive Ponzi scheme operated by disgraced former attorney, Marc S. Dreier.…
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Virginia intervenes in $1.15 billion RMBS lawsuit filed by RCT

On September 16, 2014, the Commonwealth of Virginia formally intervened in a $1.15 billion suit filed by RCT on behalf of the relator, Integra REC LLC, against numerous investment banks, including J.P. Morgan Securities, Merrill Lynch, and Morgan Stanley, which knowingly misrepresented residential mortgage-backed securities purchased by the Virginia Retirement System.…
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RCT FILES $200 MILLION CLAIM AGAINST CHINACAST EDUCATION CORPORATION’S FORMER OFFICERS AND DIRECTORS

On August 25, 2014, RCT filed claims seeking over $200 million in the Court of Chancery of the State of Delaware against five of ChinaCast’s former officers and directors on behalf of the Company for breaches of their fiduciary duties. As alleged in the lawsuit, ChinaCast’s former officers and directors breached their fiduciary duties by, among other things, looting millions in cash and assets from the Company and its subsidiaries over the course of several years.…
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RCT Files Malpractice Claims Against Nixon Peabody and Mintz Levin

On July 22, 2014, RCT filed a lawsuit in New York federal court against Mintz Levin, Nixon Peabody, and former insiders of Neogenix Oncology, a publicly reporting biotechnology company. As alleged in the complaint, the company’s former CFO, with the knowledge and consent of the company’s outside counsel, paid finder fees for sales of Neogenix stock, regardless of whether the “finders” were licensed to sell securities. This practice violated securities laws, triggered an SEC inquiry, and caused the company’s bankruptcy.…
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RCT Files $25 Million Claim Against Marcum

On July 22, 2014, RCT filed a $25 million claim in New York Supreme Court against Marcum LLP on behalf of the Joint Official Liquidators of the AJW Offshore Funds. As alleged in the lawsuit, Marcum provided negligent audit reports that allowed the manager of the funds, The N.I.R. Group, LLC and its principal, Corey Ribotsky, to receive improper management and performance fees.

RCT Wins Jury Verdict

In April 2014, following a two-week jury trial in Texas state court, RCT obtained a judgment in favor of its client, Petroleum Wholesale, LP, a full-service gasoline distributor with operations in nine western states. RCT prevailed on its client’s breach-of-contract claims and successfully defended against counterclaims that its client breached a fuel supply agreement. The court awarded $740,000 to RCT’s client and nothing to the defendants on their $10 million counterclaim. RCT tried the case against Chris Bell, a former U.S. Congressman……
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RCT FILES $64 MILLION RMBS CLAIM AGAINST INVESTMENT BANKS

On April 2, 2014, RCT filed a $64 million petition in Travis County District Court on behalf of The Texas County and District Retirement System against numerous investment banks, including J.P. Morgan Securities, Merrill Lynch, and Morgan Stanley, which knowingly misrepresented residential mortgage-backed securities. The Texas County and District Retirement System is a multibillion-dollar governmental entity created by the Texas Legislature that serves more than 655 Texas county and district employers, ranging from sheriff’s offices to water……
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RCT WINS REVERSAL IN THE SECOND CIRCUIT

On March 24, 2014, the Second Circuit reversed the trial court’s summary judgment ruling in an interpleader action, United States v. Barry Fischer Law Firm, LLC, et al., holding that the long-standing penal law rule barred Federative Republic of Brazil from asserting rights arising from a Brazilian criminal judgment. RCT represents the Joint Official Liquidators of Trade and Commerce Bank, a claimant in the interpleader action seeking the approximately $7 million in interpleaded funds.

RCT FILES $50 MILLION CLAIM AGAINST BUDDY FLETCHER AND OTHERS

On March 31, 2014, RCT filed a lawsuit in New York State Supreme Court against Alphonse “Buddy” Fletcher, Fletcher Asset Management, and others related to their alleged mismanagement of various offshore funds whose claims were pooled pursuant to a confirmed plan of reorganization that was approved by the bankruptcy court on March 27, 2014.

RCT FILES $80 MILLION CLAIM AGAINST DLA PIPER

In December 2013, RCT filed a lawsuit in New York state court against DLA Piper alleging that the law firm assisted an investment manager in defrauding two Cayman hedge funds.  As alleged in the lawsuit, DLA Piper helped the investment manager misappropriate tens of millions of dollars from the Cayman hedge funds to make margin payments on behalf of a CDO that the investment manager also managed. Read Full Story (http://www.law360.com/articles/494110/dla-piper-hit-with-80m-suit-over-misappropriated-funds)  …
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RCT obtains Approval of Settlement in Suit against Directors and Officers of Securities Firm

RCT, special counsel to Yann Geron as Chapter 7 Trustee of Pali Holdings and Pali Capital, a defunct securities firm, obtained court permission to settle a suit commenced against 13 former officers and directors of Pali as well as one company.  The settlement provides for an overall recovery in excess of $5.7 million. The settlement also provides other benefits to the Pali estates, including the disallowance of various related claims filed against the Pali companies.

RCT Settles Claims Against Partners and Former Partners of Thelen

RCT, as special counsel to the Trustee of Thelen LLP, settled overcompensation, fraudulent transfer, and other claims against 44 Thelen partners and former partners. RCT commenced 11 new actions against partners and former partners based on similar claims.  Pending actions are subject to a motion to consolidate that will be heard next month.

Reid Collins & Tsai LLP Announces Addition Of New Partners And Opening Of Dallas Office

On August 26, 2013, Reid Collins & Tsai LLP announced that Dallas trial lawyers Eric D. Madden and J. Benjamin King have joined the firm as partners. Mr. Madden and Mr. King will launch the firm's new Dallas office, located in Thanksgiving Tower. Previously partners at Diamond McCarthy LLP, Mr. Madden and Mr. King focus their practices on high-stakes bankruptcy-related litigation, including director-and-officer liability, auditor malpractice, other professional liability, and fraudulent transfers. Both also handle other general commercial……
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RCT Files $600 Million In Claims Against Credit Suisse

On July 16, 2013, RCT filed two lawsuits against Credit Suisse seeking damages in excess of $600 million related to failed "dividend recapitalization loans" syndicated by Credit Suisse from 2005 to 2007. As alleged in the lawsuits, Credit Suisse marketed and sold the loans based on false appraisals, which grossly overvalued the real estate that collateralized the loans. Eventually, every deal soured, and the borrowers ended up in bankruptcy.

RCT Wins Arbitration Against KeyCorp

An Ohio arbitrator has ruled in favor of RCT's client, a former KeyCorp employee, in an arbitration against KeyCorp. The arbitrator held that the employee's separation agreement, in which he purported to waive all claims against KeyCorp, was void for lack of consideration. As a result of the arbitration victory, RCT is now proceeding with a multimillion-dollar breach-of-contract claim against KeyCorp in Texas federal court.

Hong Kong Court Authorizes JLA Asia to Appoint RCT

The Hong Kong High Court appointed RCT to assist JLA Asia, the Hong Kong liquidators of Smart Union Mining, in pursuing claims arising from the judgment against a NY resident who was party to a mining contract. The claims arise from the default on an obligation to acquire a mining company incorporated in the BVI. RCT has commenced a lawsuit in New York Supreme Court to enforce the multi-million Hong Kong judgment.

RCT Obtains Chapter 15 Recognition for ICP Funds

Judge Robert E. Gerber of the Bankruptcy Court for the S.D.N.Y. granted foreign main recognition to the Joint Official Liquidators of two ICP Strategic Credit Income Funds. The ICP Funds are Cayman Islands exempted limited liability entities that invested in the RMBS market. In addition to recognition, the Court granted several forms of additional relief to assist the Liquidators in commencing potential actions in the U.S.

Cayman Grand Court Authorizes the ICP/SCIF JOLs to Retain RCT

On July 22, 2013, the Grand Court of the Cayman Islands authorized the JOLs of two offshore ICP Funds to hire RCT to pursue third-party litigation claims against a U.S. law firm and a European Bank, as well as to investigate claims against insiders and other third-party service providers.

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."

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 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. Read the full text of the opinion…
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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……
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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……
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