We have represented a number of fund management companies, fund principals and investors in a significant variety of financial disputes, including, for example, the following:
- Defended a foreign blockchain foundation in a $200 million class action alleging its initial coin offering and secondary-market sales constituted unregistered securities offerings under U.S. law. Navigated cutting-edge questions of whether digital tokens qualify as securities under the Howey test, including arguments over investment contracts, profit expectations, and decentralization. Addressed complex jurisdictional and extraterritoriality issues, with plaintiffs attempting to establish domestic application of U.S. securities laws through novel theories tied to blockchain nodes. Managed extensive discovery challenges arising from decentralized structures and modern communication platforms, including disputes over missing attachments, WeChat messages, and embedded cloud-based files. Secured resolution through a favorable settlement at a fraction of the damages originally sought, bringing finality to a multi-year battle while avoiding the expense and uncertainty of trial.
- Defended a digital asset and cloud-mining company in litigation over the sale of creditor claims against the FTX bankruptcy estate. Plaintiff alleged breach of contract and breach of the implied covenant of good faith and fair dealing, seeking to compel performance of trade confirmations for FTX claims. Advanced strong defenses during settlement negotiations, including that the trade confirmations were unenforceable agreements to agree and had expired by their own terms, the operative agreement conditioned closing on further agreements subject to each party’s sole discretion, and plaintiff failed to mitigate its damages. Leveraged these arguments to negotiate a highly favorable settlement, efficiently resolving the dispute while protecting the client’s commercial interests in a volatile and closely watched market.
- Defense of global private equity and advisory firm in a contentious litigation regarding the obligations of the parties in connection with sourcing, financing and acquiring non-operating interests in oil and gas properties in the Permian Basin. Substituted for outgoing counsel and completed discovery. Prepared and filed a comprehensive summary judgment motion on an accelerated schedule, addressing claims of unjust enrichment, promissory estoppel, quantum meruit, and negligent misrepresentation. Won a critical ruling from the U.S. District Court for the Southern District of New York affirming that the parties’ term sheet was enforceable and barred the plaintiff’s recovery of certain deposits and expenses. Leveraged the court’s decision to negotiate a highly favorable settlement.
- Defense of hedge fund principal against former investors asserting claims of federal and state securities fraud, fraudulent inducement, negligent misrepresentation and unjust enrichment. Coordinated multiparty defense in a litigation that included two motions to dismiss, extensive electronic discovery, including deal data room analysis, and multiple local and out of state party and fact witness depositions. Worked closely with defendants’ expert witness and took and defended expert witness depositions. Successfully moved for dismissal of a portion of the allegations at the pleading stage and the remainder on summary judgment. Although the summary judgment portion of the dismissal was reversed on appeal to the Second Circuit, our analysis of the appellate decision led the district court to narrow the issues on remand to eliminate all state law claims, which in turn significantly narrowed the issues and led to a defense verdict at trial.
- Representation of a life settlements company in two actions against a hedge fund investor in life settlements for breach of contract and in the hedge fund’s Chapter 11 proceeding in Delaware Bankruptcy Court. Our client prevailed both times.
- Representation of a hedge fund principal in a claim initiated in the Southern District of New York alleging breach of contract, securities fraud, common law fraud, breach of fiduciary duty and the right to rescission arising out of an investment in a macroeconomic investment fund headquartered in Europe but organized under Cayman law.