Lackey Hershman Obtains $21.5 Million Jury Verdict Against Royal Bank of Canada

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 
problem. 
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, 
pbl@lhlaw.net, Jamie R. Welton, Lackey Hershman, LLP, 3102 Oak Lawn Avenue, 
Suite 777, Dallas, Texas 75219, Telephone, +1-214-560-2201, Telecopier, 
+1-214-560-2203, jrw@lhlaw.net 
SOURCE: Lackey Hershman, L.L.P. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/March2013/13/c4788.html 
CO: Lackey Hershman, L.L.P.
ST: Texas
NI: FIN LAW VERDICTS LAWVIEWS  
-0- Mar/13/2013 20:39 GMT
 
 
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