Guys, the consultant moves to take control of all private FTX cases | – #Guys #consultant #moves #control #private #FTX #cases
(Reuters) – The now-bankrupt cryptocurrency exchange FTX is a private entity that emerged from the megamillion-dollar bankruptcy. court Be prepared to fight for control of your fights – and the legal fees that come with it.
Plaintiffs’ attorneys have filed at least 11 class-action complaints in federal courts in California and Florida on behalf of defrauded FTX customers. The suits overlap, but they name a variety of different defendants and assert several different legal theories.
Despite the change, attorneys at Boies Schiller Flexner and The Moskowitz Law Firm filed a petition Friday asking a special panel of federal judges to transfer all private FTX cases to federal court in Miami, where name partners David Boies and Adam Moskowitz are suing. alleges that FTX’s celebrity “brand ambassadors,” including former NFL player Tom Brady and comedian Larry David, promoted FTX’s lucrative accounts in Florida and USAhave violated the securities laws of The cases allege the accounts are unregistered securities.
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Boies Schiller and Moskowitz Law, USAof Multidistrict Litigation Court They reported to a special panel known as the Panel that oversees their Miami case judge, USAof District Judge Michael Moore, no longer a mark ambassador In his work, he proved that he can lead FTX work quickly and efficiently.
They also claimed that their firms “for all affected FTX clients this court are in a unique position to lead the process.”
In a telephone interview on Monday, Moskowitz told me that he and the Boies firm have approached potential FTX defendants, including the brand ambassador is well ahead of other plaintiff attorneys in preparing claims against as-yet-unnamed defendants in their cases.
“We are finding new assistants and assistants and will open new jobs,” he said. “We want to make sure that all customers have a forum to seek help.” Moskowitz, whose firm is based in Florida, said it made sense for the forum to be federal court in Miami because FTX was headquartered in Miami and Florida securities laws allow investors to sue defendants who allegedly engaged in fraud. (I emailed David Boies about the motion, but he said he was in court and couldn’t meet my deadline.)
I should stop here to say that I have asked many of the FTX defendants about the new consolidation proposal. A spokeswoman for Sam Bankman-Fried declined to comment on individual suits. Latham & Watkins, which represents FTX’s celebrity backers, including Brady and David, did not respond to my email.
Not everyone who has filed lawsuits on behalf of FTX clients disagrees with Boies and Moskowitz. The opposing team of plaintiff firms believes that San Francisco federal court is the appropriate venue to litigate their FTX cases and that they are the right attorneys to lead the case.
Earlier this month, seven law firms led by Edelson; Pomerantz; Kaplan Fox & Kilsheimer; and Audet & Partners brought four California class actions into one judge, moved to consolidate before U.S. District Judge Jacqueline Scott Corley of San Francisco. While their class actions initially floated theories ranging from racketeering charges to California state law claims, the firms essentially allege that FTX founder Bankman-Fried and his senior colleagues engaged in fraud with the help of FTX auditors. popular promoters.
I asked the firms in the California cases what they thought of the new petition to move the entire trial to Miami, where Boies and Moskowitz are already in charge. They said in a carefully worded email response that their team and the Boies/Moskowitz team have “different legal perspectives and strategies” and that “it is critical that any FTX case proceed in a clear and straightforward manner.”
The California group added: “We have built a strong team and are confident in our litigation strategy. We look forward to presenting our case to the jury as soon as possible.”
In other words, a leadership plan for the California court offer It sounds like the firms that came together to make it won’t agree to Boies and Moskowitz’s plan to move all the work to Miami. (Moskowitz told me that the California group leadership team offer did not contact his firm before doing so.)
Boies and Moskowitz, as well as Silvergate of the trial staff Bankasked to include three California class actions accusing FTX of facilitating alleged fraud in its move to Miami. The cases were consolidated in federal court in San Diego, but were voluntarily dismissed last week.
One of the attorneys in the Silvergate cases, Daniel Girard of Girard Sharp, declined to comment on the plaintiffs’ plans for the lawsuit, but it’s a good bet that he and other attorneys who have filed suit to name the bank will bring the lawsuits up again. a different court, perhaps before Scott Corley in San Francisco.
Silvergate counsel from Sheppard, Mullin, Richter & Hampton did not respond to a request for comment. Bank did not address the essence of the plaintiffs’ demands in the lawsuits.
FTX accounting firms Armanino and Prager Metis are named as defendants in two class actions in California, in which the plaintiffs in the cases were joined together. complaint will certainly be mentioned if he confirms his plans to give. I have contacted both firms but have not heard back.
You may wonder why all this controversy is about control issues. The answer is that repeated private litigation can cost FTX clients money. (To be clear, these special cases are different from cases that can be brought by a court-appointed receiver or trustee in an FTX Chapter 11 bankruptcy.) Class members typically turn over a portion of the benefits to the attorneys who participated in the trial. on their behalf. If different groups of attorneys pursue overlapping class actions against different defendants, FTX clients may face both attorney can pay for the set. They could make more money if the litigation was consolidated under the leadership of only one group.
The question is which group will be assigned the lead if the cases are consolidated before just one federal judge. If the panel sends the case to Florida, Boies and Moskowitz will likely prevail. If things go to California, California slate is the more likely candidate.
Any decision on Boies and Moskowitz’s consolidation petition will be several months away. But the battle to lead the court is now officially underway.
Read more:
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FTX sparked a fight over Voyager’s famous class action law firm challenges
The Boies law firm is acting strangely in the FTX case against the famous Tom Brady
Reporting by Alison Frankel; Edited by Leigh Jones
Our standards: Thomson Reuters Trust Principles.
The opinions expressed are those of the author. These are Confidence It does not reflect the views of Reuters News, which is committed to its principles of integrity, independence and freedom from bias. Alison Frankel
2023-02-14 04:52:19
Source – reuters
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