Announcements

Appellate Ruling in Bear Stearns Case Ends Nine-Year Saga

By summary order dated June 2, the Second Circuit affirmed the judgment of the U.S. District Court for the Southern District of New York dismissing a suit brought by the Chapter 11 trustee for Manhattan Investment Fund Ltd against SRZ client Bear Stearns Securities Corp. SRZ had been actively litigating this case on behalf of Bear Stearns since 2000, when Manhattan Investment Fund failed due to losses resulting from managerial fraud. The Trustee brought a fraudulent transfer action against Bear Stearns seeking to recover more than $141 million the fund had deposited into its own brokerage account at Bear Stearns in the year prior to the fund's bankruptcy filing. In June 2008, a jury found in our favor and, in the instant ruling, the Second Circuit affirmed that result on the basis that there was no error in the jury charge. The trial team was led by Harry Davis. Bob Abrahams and Sung-Hee Suh assisted on motions in limine, Michael Cook provided bankruptcy expertise, and Gary Stein and Harry Sandick assisted with jury-selection. Howard Schiffman and Eric Bensky also assisted at the appellate stage of the litigation.