Governmental Securities Litigation

We often represent governmental and municipal entities in complex commercial litigation against their financial counterparties, including banks, underwriters, or other financial intermediaries.  Our experience in these matters includes both litigations and arbitrations, as well as negotiations and work-outs to restructure payments, loan terms, and swap terminations.

Examples of our current or recent matters include:

  • Representation of five separate authorities of the State of New Jersey in arbitrations against seven separate underwriters arising from the State’s issuance of more than $4.2 billion of auction rate securities, obtaining favorable settlements following a two-week arbitration against one of the underwriters
  • Representation of the Long Island Power Authority in arbitration against eight separate underwriters arising from the authority’s issuance of nearly $1 billion of auction rate securities, obtaining favorable settlements
  • Representation of the Louisiana Stadium & Exposition District in litigation over its issuance of $238 million of auction rate securities with accompanying interest rate swaps to finance post-Katrina reconstruction of the Superdome, defeating a motion to dismiss in the Southern District of New York and obtaining a favorable settlement
  • Representation of the City of New Orleans, Louisiana in litigation over its issuance of $170 million of variable rate demand obligations with an accompanying interest rate swap, obtaining a favorable settlement following a two-day bench trial
  • Representation of the Dallas County Utility Reclamation District in arbitration over its issuance of $100 million of auction rate securities, obtaining a favorable settlement