Investment Funds Litigation

Full Suite of Services

Our nationally recognized litigators and trial attorneys regularly represent hedge funds, private equity firms and other investors, including sovereign wealth funds, university and research endowment funds, and activist investors, in both manager-side and investor-side disputes. 

Our team regularly represents clients in credit and equity investment-related disputes, including complex commercial litigation, structured finance litigation, civil securities and derivative litigation, regulatory matters, nationwide class actions, parallel civil and administrative proceedings, and multidistrict and multistate litigation.

Drawing upon the significant experience of our veteran litigators, as well as white collar and regulatory talent, who are dedicated to the specific needs of funds clients, we work as a seamless unit. Our investment funds litigation team understands complex investment structures, anticipates and manages risk, handles sensitive regulatory and compliance issues, and achieves results in high-stakes litigation and enforcement actions.

Our team works collaboratively with our leading-edge investment management and tax practices devoted to representing onshore and offshore fund clients, our financial restructuring group that regularly represents distressed funds and other bondholders in major bankruptcy cases across the globe, our funds-focused employment group, and our acclaimed white collar and regulatory practices.

In-Depth Services

We represent diverse funds and private equity firm clients on the full spectrum of matters, including advising in the following key areas, among others.

Compliance and Regulatory

• Investigations by the DOJ, SEC, CFTC, Financial Industry Regulatory Authority (FINRA), Financial Conduct Authority (FCA) and other government agency and self-regulatory organizations regarding trading practices, anti-money laundering and anti-bribery laws.
• SEC and National Futures Association (NFA) compliance examinations.
• Preparing, reviewing and customizing compliance manuals.
• Advice concerning day-to-day compliance requirements, including insider trading and other regulatory issues.
• Monitoring enforcement actions and providing up-to-date guidance.
• On-site training programs for traders and portfolio managers on insider trading issues and best practices.
• Monitoring and addressing regulatory developments, and tailoring training programs for investment advisers on complying with new regulations.
• Regulatory filings and licensing approvals, including preparing SEC forms (Form ADV, annual amendments, Form PF and Section 13 and 16 filings).
• Advising merger arbitrage funds on public mergers and acquisitions (M&A) deals.
• Counseling portfolio company boards and other interested parties regarding going private.
• Internal investigations of portfolio companies, including in emerging markets.

Equity, Credit and Fund Management Litigation

• Matters involving limited partner/general partner disputes and general partner removals, litigation among fund principals, conflicts of interest and portfolio company investments.
• Section 16(b) short-swing profit securities actions in federal court.
• Securities class actions and shareholder derivative litigation.
• Redemption gates, suspension and other capital withdrawal disputes.
• Separation agreements with departing partners over equity participation and other compensation issues.
• Disputes with public and private issuers involving fund investments and activist campaigns.
• Structured credit funds in trust instruction proceedings.
• Real estate funds in disputes involving defaulted borrowers across in connection with senior and mezzanine financings, including Uniform Commercial Code (UCC) foreclosure proceedings.
• Distressed funds and bondholder groups in federal bankruptcy courts and cross-border insolvency proceedings.
• Private equity firm clients in portfolio company litigation.
• AAA, JAMS and international arbitration and mediation.

Representative Matters

• Representing an investor in trust instruction proceedings in New York and California concerning the treatment of hundreds of millions of dollars in proceeds kept in dozens of residential mortgage-backed security (RMBS) deals.
• Representing lenders in Utah federal court in a dispute arising from the default of a $42-million EB-5 construction loan and guaranty issued in connection with the development of Powder Mountain.
• In a precedent-setting proxy litigation, obtained an injunction prohibiting a large technology company from holding a shareholder vote that would have been unfair to our hedge fund client and other shareholders.
• Obtained dismissals of a securities class action and multiple shareholder derivative lawsuits alleging fraud and breach of fiduciary duty by an investment advisor and its principal. The U.S. Court of Appeals for the 11th Circuit upheld the dismissals.
• Achieved complete dismissal for a university endowment investment vehicle from a putative class action in Delaware Court of Chancery alleging aiding and abetting breaches of fiduciary duties in relation to a shareholder vote related to conversion and voting caps.
• Achieved a favorable settlement for a multibillion-dollar hedge fund in multiple securities and derivative class action lawsuits arising out of alleged misconduct at one of its special situation investments.
• On behalf of persons and entities associated with two investment funds, achieved a complete dismissal of a lawsuit by the former chairman and chief executive officer of an affiliate regarding the termination of his employment and equity interests.