NY Dist Court – Suit for breach of contract and gross negligence managing a CDO, judgment reversed

16 Aug

From: Charles Cox [mailto:charles@bayliving.com]
Sent: Monday, August 13, 2012 11:29 AM
To: Charles Cox
Subject: NY Dist Court – Suit for breach of contract and gross negligence managing a CDO, judgment reversed

In plaintiffs’ suit for breach of contract and gross negligence based on defendant’s alleged disregard of its obligation to manage the Collateralized Debt Obligation (CDO) portfolio in favor of its investors, judgment of the district court is reversed and remanded where: 1) the plaintiffs have plausibly alleged that the parties to the contract intended the contract to benefit the investors in the CDO directly and create obligations running from defendant to the investors; 2) plaintiffs have plausibly alleged that the relationship between defendant and the plaintiffs was sufficiently close to create a duty in tort for defendant to manage the investment on behalf of plaintiffs; and 3) plaintiffs have alleged sufficient facts that plausibly suggest that defendant acted with gross negligence in managing the investment portfolio, ultimately leading to the failure of the investment vehicle and plaintiffs’ losses.

See the attached.

BAYERISCHE LANDESBANK v. ALADDIN CAPITAL MANAGEMENT.docx

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: