Page 44 - NYLJ Professional Excellence 2021

LITIGATION DEPARTMENT OF THE YEAR:
FINANCE

KASOWITZ BENSON TORRES

Q&A What are some of the department's most sat-
isfying successes of the past year and why?
We obtained several significant wins—including two in the WHILE WE HAVE A REPUTATION AS AGGRESSIVE
span of a week—on behalf of leading investment managers LITIGATORS, WE ARE ALSO CREATIVE, COMMERCIAL,
holding over $1.4 billion in notes issued by the National AND PRAGMATIC PROBLEM SOLVERS. WE COME UP WITH
Collegiate Student Loan Trusts in groundbreaking litigations STRATEGIES THAT OTHERS MISS, EITHER TO RESOLVE
concerning the management and control of the Trusts. In DISPUTES BEFORE THEY SEE A COURTROOM OR TO FRAME
these cases, that we lead, the Trusts’ owners have attempted THEM IN A WAY THAT WILL POSITION OUR CLIENT TO WIN
to seize control of the Trusts in violation of the Trust Docu- WHEN WE DO GET TO COURT. WE ALSO HAVE A HIGHLY
ments. Our successful rulings established protections that EFFECTIVE TEAM. WE STAFF OUR MATTERS LEANLY WITH
will help ensure the stability of the $10 trillion securitiza- EXPERIENCED LAWYERS WHO ARE STEEPED IN THE FACTS
tion market for investors. Among other victories, on August AND THE LAW. THIS APPROACH ENGENDERS MULTIPLE
19, we prevailed on a key appeal when the Third Circuit, LEVELS OF SCRUTINY—FROM THE MOST JUNIOR
issued a precedent-setting opinion, in favor of our clients, ASSOCIATE TO THE MOST SENIOR PARTNER. THE VALUE
by invalidating an attempt by the Trusts’ owners to install WE ADD IN THE FINANCIAL SECTOR IS SECOND TO NONE.
their own affiliate to service and sell the Trusts’ loans. And,
then on August 27, the Delaware Chancery Court issued a
groundbreaking decision clarifying that the Trusts’ owners
owed fiduciary duties to our clients and other investors its representations and warranties, and that Credit Suisse
when fulfilling any obligations concerning the student loan was liable for over $600 million in damages, one of the very
collateral. few such actions to go to trial. Following the victory, Credit
Our $600 million win for MBIA, led by our partners Marc Suisse paid $600 million to MBIA to resolve the matter.
Kasowitz and Kenneth David, after 10 years of litigation capped Our opt-out practice, led by partner Stephen Tountas, has
by a two-week trial, in a put-back action against Credit Suisse, been booming. We filed a highly publicized case on behalf of
was also a tremendous achievement. The court found that Public Employees’ Retirement System of the State of Missis-
MBIA had convincingly proved that Credit Suisse breached sippi against Valeant Pharmaceuticals, where we developed a

42 October 2021 |