Financial Products Litigation

"[C}ompanies seek. . .  its attorneys to handle some of the most complex financial litigation they encounter." - Benchmark Litigation USA

Matters involving derivatives, complex financial products and commodities form a significant part of Cadwalader's litigation practice. With a leading derivatives and structured products practice, our lawyers have counseled clients as to issues involving many novel, innovative and complex financial instruments. Our extensive knowledge of, and experience with, the development and trading of such products means that we are well-positioned to handle any litigation surrounding them quickly and efficiently.

We represent both dealers and end-users in connection with disputes relating to a variety of products including mortgage-backed securities, asset-backed securities, CDOs, CMOs, CBOs, repos, interest rate swaps, total return swaps and credit default swaps, options, and a host of other instruments.

In addition to counseling our clients on the risks associated with particular products and alternative strategies for dealing with defaults, margin calls and similar trading issues, we represent them in regulatory inquiries and investigations involving trading in complex financial instruments.

The department has extensive experience in litigating commodities matters involving a vast array of financial instruments, including foreign currencies, U.S. and foreign government securities, and U.S. and foreign stock indices, as well as traditional agricultural, energy and physical commodities. We represent clients in claims involving accounting misstatements, insider trading, manipulations, and other instances of alleged fraudulent activity, before the Commodities Futures Trading Commission (CFTC) and SEC, as well as self-regulatory agencies.

  • AIG Financial Products Corp. in an interpleader action consolidated with a related case involving a CDO "waterfall" dispute between different classes of note holders over two fund distribution provisions in an indenture
  • MBIA Inc. and affiliate LaCrosse Financial Products LLC in a summary judgment motion claiming, inter alia, breach of contract by Dutch bank Rabobank as well as co-defendants Paragon and The Bank of New York Mellon Trust Co. NA. stemming from Rabobank's sale of more than $100 million of CDO collateral in consultation with BNY Mellon without MBIA's permission, in violation of agreements underlying an investment deal that provided credit default swap protection and financial guaranty insurance for the CDO
  • MBIA Insurance Corporation, which provided financial guaranty insurance in connection with five residential mortgage securitizations sponsored by Residential Funding Company LLC (RFC) in asserting claims against RFC for fraud and breach of contract arising out of MBIA's insurance for these securitizations
  • Bank of America NA in an action in the Southern District of New York to hold a NorthStar Realty Finance Corp. subsidiary to an interest rate swap agreement tied to a $550 million collateralized debt obligation transaction
  • UBS in connection with claims for fraudulent inducement, fraudulent conveyance and breach of contract against Highland Capital Management, L.P. and several investment funds that Highland manages arising out of the restructuring of a warehouse financing facility that UBS provided to Highland and its affiliates in connection with a CLO squared securitization that Highland sought to sponsor

7 Attorneys

Bull, Nathan Partner New York
T. +1 212 504 5752
Burns, Gillian Groarke Special Counsel New York
T. +1 212 504 5696
Dolan, Michael G. Senior Counsel New York
T. +1 212 504 6320
Halper, Jason M. Partner New York
T. +1 212 504 6300
Halstead, Ellen Special Counsel New York
T. +1 212 504 6732
Hawkins, Howard R. Senior Counsel New York
T. +1 212 504 6422
Hoff, Jonathan M. Partner New York
T. +1 212 504 6474

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4th Annual Investors' Conference on European CLOs & Leveraged Loans | April 5 | London

David Quirolo and Nick Shiren will speak at this key industry event.

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