Investment Banking Litigation: Dispute Regarding Fees for Private Placement of Debt Securities

Partner Richard Quadrino was hired to defend a company engaged in a national business that invests in municipal tax liens. The client was sued by a Wall Street investment bank over fees allegedly due for raising funds for the client in various credit markets.

The Wall Street investment bank had prepared a private placement memorandum and engaged in various activities, raising money for projects in various States. The parties disputed the scope of the investment bank's services, the nature of the services provided, and the applicability of the fee agreement to the ultimate temporary financing arranged.

Mr. Quadrino represented the client in the Commercial Division of New York's Supreme Court. He successfully contended that the investment bank's services fell outside the scope of the investment bank's fee agreement. There were issues regarding equity linked subordinated unsecured debt securities, senior secured debt securities, and other financing structures, all as they related to the fee agreement of the parties. Mr. Quadrino's efforts resulted in a very favorable settlement for the client.