Lackey Hershman Obtains $21.5 Million Jury Verdict Against Royal Bank of Canada
DALLAS, March 13, 2013 /CNW/ - Lackey Hershman, LLP obtained a $21,565,000
million jury verdict in favor of its client, Highland Capital Management, L.P.
(Highland), on March 13, 2013, and against RBC Capital Markets, LLC, which is
part of the Royal Bank of Canada (RBC). The verdict, which was rendered in the
95(th )Judicial District, Dallas County, Texas, followed a 7-day trial arising
out of RBC's failure to settle a securities trade on March 14, 2001. When
pre-judgment interest is included, it is anticipated that the judgment entered
against RBC will be approximately $45 million.
RBC was represented by Seward & Kissel, LLP, from New York, New York, and
Carrington, Coleman, Sloman & Blumenthal, L.L.P., from Dallas, Texas.
The jury returned its verdict on the morning of March 13, 2013, after
approximately two-and-a-half hours of deliberation. The case stemmed from
RBC's alleged refusal to settle a securities trade. Highland alleged that on
March 14, 2001, RBC Capital Markets, LLC, f/k/a RBC Dominion Securities Corp.,
agreed to a trade whereby Highland purchased seven deeply subordinated
three-year promissory notes from RBC with an aggregate face value of $45.4
million for 52.5 cents on the dollar (or a 47.5% discount). The notes were
issued by McNaughton Apparel Group, Inc. (McNaughton), a publicly traded
company. Highland alleged that RBC informed Highland on March 20, 2001, that
RBC would not be able to deliver the securities as promised, and refused to
settle the trade. On April 16, 2001, it was publicly announced that Jones
Apparel Group was acquiring McNaughton, and on June 19, 2001, the notes were
paid off in full in conjunction with the closing of that acquisition.
"The jury verdict is an important one for the securities industry because it
reaffirms that oral agreements to purchase and sell securities remain as
binding and enforceable under New York law today as they have for more than
200 years," said Paul Lackey, the lead counsel for Highland. Jamie Welton, a
partner at Lackey Hershman that tried the case for Highland, said, "The jury
verdict against RBC is the result of years of hard-fought litigation through
more than 9 different state and federal trial and appellate courts, and
demonstrates Highland's unwavering commitment to litigate to judgment no
matter what the stakes or how long it takes."
"This was an incredibly important case to the securities industry. This
verdict validates the integrity on which our markets rely," said Mark Okada,
Co-Founder and Chief Investment Officer of Highland Capital Management, L.P.,
who testified at the trial. "Lackey Hershman tried the case with lethal
precision, and gave us a noticeably competitive advantage in the courtroom"
said Scott Ellington, General Counsel for Highland Capital Management, L.P.
Highland was represented at trial by Paul B. Lackey, Jamie R. Welton, Kristin
Miller-Reinsch, and Timothy J. Miller, from Lackey Hershman, LLP. Adam Warren,
of the Chicago office of Duff & Phelps, testified as an expert on the
applicable customs and practices in the securities industry, and fair market
value of the notes, for Highland.
RBC was represented at trial by Michael J. McNamara, Jack Yoskowitz, and
Thomas Ross Hooper, of Seward & Kissel, LLP, and Monica W. Latin and Tim
Chastain, of Carrington, Coleman, Sloman & Blumenthal, L.L.P.
About Lackey Hershman, LLP:
Lackey Hershman, LLP litigates matters in state, federal, and appellate courts
around the country. While the attorneys at Lackey Hershman, LLP have
litigated almost every imaginable type of case, Lackey Hershman, LLP has
particular expertise and experience in finance, healthcare, advertising, and
contract disputes. Although Lackey Hershman, LLP's clients range from
billion-dollar financial institutions to individual entrepreneurs, they have
one thing in common – the desire for the most aggressive, creative, and
effective representation in the country. Lackey Hershman, LLP's goal is to
effectively, efficiently, and rapidly resolve its clients' problems,
regardless of whether that resolution must take place in the public domain,
the courts, the boardroom, or anywhere else. A litigation team from Lackey
Hershman, LLP accepts nothing less than finding the optimal solution to any
client's problem, regardless of the size of the client, the opponent, or the
About Highland Capital Management, L.P.:
Highland Capital Management, L.P. is an SEC registered investment adviser
specializing in alternative fixed income investment strategies, and is one of
the largest and most experienced global alternative credit managers in the
world. An industry leader, the firm invests across all assets to the benefit
of its investors in hedge funds, long-only commingled funds, separate
accounts, private equity, and collateralized loan obligations. The firm has
offices located in Dallas, New York, London, Singapore, and Seoul.
Paul B. Lackey, Lackey Hershman, LLP, 3102 Oak Lawn Avenue, Suite 777, Dallas,
Texas 75219, Telephone, +1-214-560-2201, Telecopier, +1-214-560-2203,
email@example.com, Jamie R. Welton, Lackey Hershman, LLP, 3102 Oak Lawn Avenue,
Suite 777, Dallas, Texas 75219, Telephone, +1-214-560-2201, Telecopier,
SOURCE: Lackey Hershman, L.L.P.
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-0- Mar/13/2013 20:39 GMT
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