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Financial Institutions

The economic turmoil of recent years has led to an unprecedented number of calls to Susman Godfrey attorneys from clients throughout the country seeking advice on potential claims. Whether the cases involve sophisticated financial products, fraudulent behavior by money managers, or M&A and insurance contracts upended by market upheaval, Susman Godfrey has the expertise and track record of success that clients can rely upon in pursuing legal remedies against or defending financial institutions.

Because we have a reputation for trying cases, we are also effective at settling them. We are often hired to sue or represent investment banks, accounting and auditing firms, private equity and hedge funds, commercial banks, large companies, and other financial institutions. We handle cases for both plaintiffs and defendants. Whether representing plaintiffs or defendants, we prefer to work on a contingent fee or other alternative fee basis so that we get paid for results, not effort, and so our financial interests are completely aligned with our clients' interests.

Representative Cases:

  • CIFG v. EMC Mortgage Corp. — We represent CIFG Assurance North America, the financial products insurance company, against EMC, the mortgage division of Bear Stearns (now JPMorgan Chase), in a lawsuit alleging breaches of contract and negligent misrepresentation in connection with the origination of the mortgages underlying bonds insured by CIFG. The case is now pending in state court Denton County, Texas.
  • Wells Fargo et al. v. Trust Preferred Solutions, et al. — We represent Trust Preferred Solutions ("TPS"), a subsidiary of TPG Credit Management, in litigation surrounding an offer by TPS to purchase certain TruPS held as collateral by a CDO. Certain of the CDO's senior noteholders objected to the sale of the collateral, and the CDO Trustee filed an interpleader action in federal court in New York. Susman Godfrey has filed a motion on behalf of TPS seeking judgment on the pleadings to permit the sale to proceed. 
  • ORIX v. UBS (Paine Webber) — We represented ORIX, the trustee of two Commercial Mortgage-Backed Securities pools, in two lawsuits against UBS, which had acquired Paine Webber. The suits alleged that Paine Webber had improperly placed in the trusts properties that were likely to default. The cases both went to trial, and both were favorably settled after jury selection. 
  • Univision Communications Inc. v. The Reserve Fund, et al. — We represented Univision Communications Inc. in a New York state court action and a Minnesota federal court action for breach of contract, breach of fiduciary duty, fraud, and negligence involving the Primary Fund, a money market mutual fund managed by The Reserve Fund that "broke the buck" when its net asset value (NAV) per share fell below $1.00. The Reserve Fund is still in liquidation and the SEC is pursuing federal securities law claims while private lawsuits are on hold.
  • Argent Classic Convertible Arbitrage Fund L.P. v. Countrywide Financial Corporation - We are serving as co-counsel for a group of absent class members who were allegedly defrauded into purchasing securities issued by Countrywide, a leading originator of subprime mortgage loans. The complaint alleges that Countrywide misrepresented the quality of its lending practices and internal controls, and that the value of the securities it issued dropped substantially when the truth about Countrywide's actual practices and financial condition emerged. The federal court recently denied defendants' motions to dismiss.
  • Folsom v. IndyMac Bancorp, Inc. — We are serving as interim class counsel representing investors who were allegedly defrauded into purchasing securities issued by the parent of mortgage lender IndyMac Bank. The complaint alleges that IndyMac officers misrepresented the bank's financial health and the quality of its lending practices, and the value of the securities dropped substantially when the truth about the bank's financial health was disclosed.
  • Accredited Home Lenders v. Wachovia — We represented Accredited Home Lenders in a TRO and breach of contract action filed in California state court over a wrongful default declared by Wachovia in a credit re-purchase agreement. The case was resolved favorably, following the entry of an agreed TRO. 
  • Toronto Dominion (Texas), Inc., et al. v. PricewaterhouseCoopers LLP — We represented a syndicate of lenders asserting accounting malpractice claims against PricewaterhouseCoopers, which audited a waste-services company that defaulted on a multi-billion dollar credit facility after declaring bankruptcy and withdrawing its financial statements. Among many improprieties, the company was alleged to have speculated in interest rate swaps that it improperly characterized as hedges. The case was settled shortly before trial for $87.5 million.