David K. Momborquette focuses on complex commercial litigation and regulatory matters primarily for financial services industry clients, including hedge funds, funds of funds and private equity funds. David has substantial experience in both private securities litigation and securities regulatory matters; investigations by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, U.S. Attorneys’ offices, the New York Stock Exchange and state attorneys general offices; internal investigations; investor disputes; and class action litigation. He has litigated numerous cases in federal and state courts throughout the United States, as well as before industry arbitration panels. David also provides day-to-day counseling for financial services companies on a variety of regulatory issues including questions relating to insider trading, market manipulation, SEC examinations and other similar securities law and regulatory issues.

David is a 1986 graduate of Boston University, College of Liberal Arts, and a 1990 graduate of Boston University School of Law, where he was note editor of the Boston University Law Review, a G. Joseph Tauro Scholar and an Edward F. Hennessey Scholar. David has written extensively on securities regulation and frequently lectures on compliance training and presents on regulatory compliance and enforcement issues.

Representations

Representation of a major interdealer brokerage firm in various arbitrations and civil litigations arising out of a global corporate raid by a competitor, including a 4-1/2 month jury trial.

Representation of several investment managers in connection with regulatory investigations into trading activities.

Representation of an investment manager in connection with wind-up of funds and related U.S.- and Cayman Island-based litigation, as well as state and federal regulatory investigations.

Representation of investment manager in connection with various matters arising from the theft of investor assets by employee of investment manager.

Representation of investment manager and offshore fund in connection with fraudulent conveyance claims brought by supplier of portfolio company.

Representation of investment manager in connection with a challenge to a merger involving a portfolio company.

Tomfohrde v. Havell Capital EMIF, L.P., et al./Becker v. Havell Capital EMIF, L.P., et al.

Represented investment manager and related entities in connection with investor suits arising from wind-up of investment fund.

CSX Corp. v. The Children's Investment Fund Management (UK) L.L.P., et al.
Counsel to investment fund in connection with civil action seeking to enjoin proxy solicitation.

Kinbergy v. Cornell Companies, Inc., et al.
Counsel to private equity fund in connection with shareholder action brought to enjoin a proposed merger.

Calyon v. Mizuho Securities USA, Inc., et al.
Counsel to securities firm in connection with civil action arising from hiring of CDO group.

In the Matter of Certain Private Investments in Public Entities
Counsel to certain investment funds in connection with SEC investigation into certain private placement transactions.

AF Holdings, Inc. v. Aeroflex Inc.
Counsel to private equity fund in connection with civil litigation arising from a “go shop” provision of a merger agreement.

In re NTL, Inc. Securities Litigation
Counsel to certain officers and directors in connection with securities class action and private civil action.

In Re Tribune Company Fraudulent Conveyance Litigation/Lyondell Fraudulent Conveyance Litigation
Represented a group of investment managers and related entities in fraudulent conveyance actions arising from leveraged buyout transactions.

In re Metrocall Holdings, Inc. Shareholder Litigation
Counsel to certain officers and directors in connection with breach of fiduciary duty claims arising from corporate merger.

In the Matter of New York Stock Exchange, Inc.
Counsel to independent consultant to New York Stock Exchange retained in connection with review of the NYSE’s rules, practices and procedures applicable to floor members.

In re Kidder Peabody Securities Litigation
Counsel to officer and director in connection with securities class action and derivative action arising out of the fraudulent trading activity of government bond trader.

Lippe v. Bairnco, et al.
Counsel to Kaydon Corporation in connection with fraudulent conveyance action arising from a series of corporate transactions involving now bankrupt entity.

In re Physicians Computer Network, Inc. Securities Litigation
Representation of chairman in securities class action, two separate private actions, as well as certain government inquiries and companies’ bankruptcy all arising out of accounting irregularities at the company.

In the Matter of Certain Market Making Activities on NASDAQ
Counsel to NASDAQ securities trader in connection with SEC investigation into certain market making activity.

In re Fine Host Corporation Securities Litigation
Counsel to special committee of outside directors of Fine Host in connection with an internal investigation, securities class actions and government inquiries arising out of accounting irregularities at the company. Also represented former officer in connection with shareholder class action and bondholder action.

In re Equitec Rollup Securities Litigation
Represented limited partnership and certain individuals in securities class actions arising from roll-up of real estate limited partnerships.

Publications

“Regulation of Market Manipulation,” Federal Securities Exchange Act of 1934, March 2018 (co-author)

“Second Circuit, in Split Decision, Overrules Limitation on Insider Trading Liability Established in U.S. v. Newman,” SRZ Client Alert, Aug. 28, 2017 (co-author); republished in The Hedge Fund Journal, September 2017

“Managing and Resolving Hedge Fund and Private Equity Fund Disputes,” Corporate Disputes, July – September 2017

Big Boy Letters,” Insider Trading Law and Compliance Answer Book (Practising Law Institute) 2011-2018

“Regulatory Change: 2015 Diagnosis, 2016 Prognosis — Schulte Roth & Zabel’s Leading Securities Litigation Practice,” The Hedge Fund Journal, November 2015 (profile)

“Rule 105 Update: New Round of Enforcement Highlights SEC Approach on Short-Selling Violations,” SRZ Client Alert, Oct. 22, 2015 (co-author); republished in The Hedge Fund Journal, November 2015

“The Impact of United States v. Newman on the Use by Investment Advisers of Information Resources,” The Investment Lawyer, June 2015 (co-author)

Newman’s Aftermath: District Court Vacates Four Insider Trading Guilty Pleas; Government Seeks Rehearing in Second Circuit,” SRZ Client Alert, Jan. 27, 2015 (co-author); republished in The Hedge Fund Journal, February/March 2015

SRZ Insider Trading Developments Newsletter, Summer 2014 (co-author)

“Keeping Current: SEC Update: Enforcement Program Taking Shape Under New Leadership,” Business Law Today, July 2013 (co-author)

“SEC Enforcement Division Increases the Pace of Rule 105 Investigations,” SRZ Client Alert, June 28, 2013 (co-author)

“SEC Update: Enforcement Program Taking Shape Under New Leadership,” SRZ Client Alert, June 24, 2013 (co-author)

SRZ Insider Trading Developments Newsletter, Summer 2012 (co-author) 

“The Power of Arbitrators to Subpoena Non-Parties for Pre-Hearing Discovery,” Mealy’s International Arbitration Report, December 2006

“Courts Split On The Standard For Pleading Loss Causation In Securities Fraud Cases,” SRZ Securities Law Developments, October 2004

“NASD’s New Expungement Procedures Make It Even Harder to Wipe the Slate Clean,” SRZ Securities Law Developments, October 2004

Speaking Engagements

“Enforcement,” SRZ 27th Annual Private Investment Funds Seminar, New York, January 2018

“State of the Law and Practice: Insider Trading,” SRZ 26th Annual Private Investment Funds Seminar, New York, January 2017

“Recent Examinations: Substantive Areas of Regulatory Focus,” SRZ 25th Annual Private Investment Funds Seminar, New York, January 2016

“Insider Trading Law and Compliance: How Best to Protect Your Firm,” FEA Hedge Fund Meeting, New York, October 2015

MFA SEC Examinations: Minimizing Enforcement Risk, New York, July 2014

“Compliance Spotlight” and “Regulatory Examinations and Enforcement,” SRZ 23rd Annual Private Investment Funds Seminar, New York, January 2014

“Compliance Spotlight,” SRZ 22nd Annual Private Investment Funds Seminar, New York, January 2013

“Form PF, Form ADV and Form 13H,” UBS Premier Hedge Fund Client Conference, Naples, May 2012

“Recent Developments in US Insider Trading Law and FCPA Enforcement,” SRZ Webinar, February 2012

“Compliance Spotlight” and “Regulatory and Compliance,” SRZ 21st Annual Private Investment Funds Seminar, New York, January 2012

“Update on UK and US Insider Trading,” SRZ Webinar, November 2011

“New Whistleblower Rules: The Impact on Fund Managers,” SRZ Investment Management Hot Topics, New York, October 2011

“Rule 13h-1 and Form 13H,” Goldman Sachs Prime Brokerage Regulatory Reporting Overview, New York, October 2011

“Compliance Spotlight,” SRZ 20th Annual Private Investment Funds Seminar, New York, January 2011

“Private Equity Investment Adviser Registration,” SRZ Investment Management Hot Topics, New York, December 2010

“Managing Compliance Strategically,” SRZ Investment Management Hot Topics, New York, October 2010

“Risk Management in a Changing Environment,” SRZ 19th Annual Private Investment Funds Seminar, New York, January 2010

“Hedge Fund Litigation,” INSOL International Cayman Islands One Day Seminar 2009, Cayman Islands, November 2009

“Crisis Management: Lessons Learned From 2008,” SRZ 18th Annual Private Investment Funds Seminar, New York, January 2009

“Document Preservation and Self-Reporting Issues,“ SRZ Investment Management Hot Topics Seminar, New York, October 2007

“Selective Issues in Market Manipulation and Section 13D,” SRZ Investment Management Hot Topics Seminar, New York, April 2007

“Valuation Practices and Procedures,” MARHedge Cayman Hedge Fund Best Practices: Operations and Regulatory Compliance Conference, Cayman Islands, December 2006

“How the Investors in Durus Capital Management Took the Firm's Blowup into Their Own Hands and Averted Disaster,” Absolute Return Symposium 2006, New York, November 2006

“Taming the Information Beast: The Do’s and Don’ts,” IQPC Hedge Fund Registration and Compliance Conference, September 2006

“Insider Trading Issues,” Private Investment Funds Seminar, May 2006

“Hedge Fund Dissolutions,” SRZ Hedge Fund Compliance Seminar, April 2006

“Work Product Privilege,” SRZ Hedge Fund Compliance Seminar, December 2005

“Use of Performance Data,” SRZ Hedge Fund Compliance Seminar, March 2005

“Bank Debt/Distressed Securities,” SRZ Hedge Fund Compliance Seminar, February 2005

Memberships

  • American Bar Association
  • New York City Bar Association

Prior Experience

  • Litigation Associate, Weil, Gotshal & Manges