Greenwich Capital Markets and CDO issuers obtain dismissal of CDO litigation brought by M&T Bank
Client(s) Royal Bank of Scotland Group plc, The
Jones Day successfully defended broker-dealer Greenwich Capital Markets, Inc. ("Greenwich") and issuers Cairn Mezz ABS CDO III, Ltd. and Cairn Mezz ABS CDO III Inc. (together, "Cairn") in a CDO litigation brought by M&T Bank. M&T alleged that the offering memorandum relating to the CDO was defective, false and misleading, conflicted with the CDO's indenture, and that as a result M&T was misled about the performance of the CDO's payment waterfall following an event of default. M&T alleged that Greenwich and Cairn negligently misrepresented the terms of the CDO, and it sought rescission and the return of its entire initial investment. The claims included negligent misrepresentation, aiding and abetting breach of fiduciary duty, and violations of New York's consumer protection statute. On behalf of Greenwich and Cairn, Jones Day took the lead in removing the case to federal court and moving to dismiss. In February 2012, the court dismissed M&T's complaint in its entirety, holding that M&T failed to allege any actionable claims as a matter of law.
M&T Bank Corp. v. LaSalle Bank National Association et al. (W.D.N.Y)