News 04 Dec. 2009

Curtis' Successful Defense of Citco's Hedge Fund Litigation Claim Noted in Law360 Article

In a December 3 article, Law360 reported on the firm's successful argument to U.S. District Court for the Southern District of New York's recent decision to uphold litigation claims filed against Banc of America Securities LLC by Curtis client Citco Fund Services NV.

The matter stems from an underlying action brought in 2005 by a group of local and foreign investors seeking to recover losses stemming from the liquidation of Lancer Offshore Inc. and OmniFund Ltd. The investors claimed that former directors and accountants of the hedge funds, along with Citco and BAS, defrauded them. Citco, who is accused of passing cooked NAV statements along to investors, alleges in its cross-claim that BAS departed from normal standards of banking by administering the underlying data used to draft the NAV reports and should therefore share in culpability. On Wednesday, December 2, Judge Shira Scheindlin upheld Citco's claims and cautioned BAS against moving for summary judgment.

Curtis Partners Eliot Lauer and Mike Moscato are acting as co-counsel on this matter. Gilbride Heller & Brown PA is also representing Citco.