X hits on this document

89 views

0 shares

0 downloads

0 comments

5 / 22

& Kim LLP (“K&K” or the “Firm”) and The Law Offices of Jay Y. Mandel, PLLC

(“Mandel”) from continuing to represent Respondents in an arbitration they commenced

against Petitioners seeking damages in connection with Respondents’ purchase of auction

rate securities (,‘A”’’> from Lehman. The arbitration, which is at an early stage, is being

I

administered at the New York City office of the Financial Industry Regulatory Authority

(“FINRA’’) and has been assigned Case No. 08-00156 (the “Arbitration”). Petitioners

also seek a stay of the Arbitration pursuant to CPLR 2201 pending a ruling on

disqualification.

2.

Disqualification of Respondents’ counsel, K&K, is required because Sean

Casey, former Deputy Chief of the Business and Securities Fraud Unit of the US.

Attorney‘sOffice in the Eastern District of New York, recently joined K&K as a partner

While at the US. Attorney’s Office, Mr. Casey led a criminal investigation (the

“Investigation”) of Lehman’s sale of auction rate securities (“ARS”) to Respondents,

among others. As part of the Investigation, subpoenas were issued under Mr. Casey’s

name requiring three of the Petitioners to appear and give testimony before a grand jwy.

The same A R S transactions that were a subject of the federal government’s Investigation

are the subject of the pending Arbitration. On information and belief, the Investigation is

ongoing.

3.

Respondents do not contest that Mr. Casey is disqualified from acting as

their counsel in the Arbitration (nor could they), but contend his disqualification should

not be imputed to the F i m because the Firm has erected a screen isolating him from the

filesand the attorneys working on the Axbitration. Respondents are incorrect. Under the

governing case law, because the confidential information Mr. Casey acquired at the U.S.

2

Supreme Court Records OnLine Library - page 5 of 22

Document info
Document views89
Page views90
Page last viewedSun Dec 11 12:41:41 UTC 2016
Pages22
Paragraphs728
Words5463

Comments