Insights | Kobre & Kim — Disputes and Investigations

Client Alert June 15, 2020

New tools to defend against aggressive non-U.S. insolvencies

Even when they leave their home countries for the United States, many individuals still get targeted by aggressive foreign insolvency proceedings that try to get recognized in U.S. courts.
However, as a recent U.S. Bankruptcy Court decision in favor of a Russian debtor has revealed, there are important steps targets can take to defend themselves.
By gathering evidence to show the corrupt nature of the foreign proceedings and one’s severed ties with the foreign country, targets can beat back these hostile campaigns.

Client Alert May 11, 2020

Clearing Your Name: Fending Off Trade Secret Theft Judgment Claims

In the midst of the ongoing U.S.-China trade war, U.S. accusers who obtain a judgment in their dispute can use it to interfere with the day-to-day commercial activities of PRC entities.
To prevent and protect against a judgment, Chinese entities must understand both their own vulnerabilities and their legitimate rights before and after a judgment.
Pre-emptively preparing a defensive strategy that considers not only judgment defense, but also other likely scenarios – from a civil IP theft dispute to U.S. criminal proceedings under the umbrella of national security – can be quite effective.

Client Alert April 28, 2020

An Opportunity across the Pond: U.S. Discovery Developments can Drive UK Proceedings

Compared with UK discovery, with its limited scope and high costs, U.S. discovery can be a much more powerful and widely usable tool of enforcement.
U.S. Discovery, unlike UK discovery, is not limited to documents contained within its national borders.
Furthermore, documents discovered through U.S. discovery can often be used for purposes beyond those specifically identified in the original discovery application.

Client Alert April 15, 2020

Making Patents Pay: Monetizing Dormant Assets in an Economic Downturn

Amidst an economic downturn, the active assertion of patent rights can generate massive returns for patent holders, as demonstrated by numerous recoveries in the U.S. in 2019.
The passing of the America Invents Act (AIA) in 2011 and subsequent judicial decisions have led to a downturn in patent value, but the recent precedential decision in the U.S. Patent Trial and Appeal Board (PTAB) has turned more positive, placing patent holders in a favorable position for the first time in recent memory.
With legal conditions for patent enforcement improving in the U.S., now is an important time for businesses, their investors and their advisors to identify and deploy assertable IP holdings.

Client Alert March 20, 2020

Coronavirus: Buying Time in Uncertainty

For companies facing the economic fallout of COVID-19, time has become the most precious commodity to preserving their assets and riding out the storm.
The ‘force majeure’ clause often found in contracts under New York and English law, if invoked correctly, could increase the likelihood of success in potential litigation with lenders.
Our lawyers around the world take a close look at the force majeure clause and how courts in different jurisdictions (including Brazil and Argentina) have chosen to interpret its applicability in a pandemic situation.

Client Alert December 15, 2019

Clearing Your Name: When Trade Secret Disputes Become a National Security Issue

As the ongoing trade war with China intensifies, U.S. entities have increasingly alleged trade secret theft against Chinese individuals and companies, in cooperation with U.S. law enforcement actions.
With this in mind, Chinese parties in global trade secret disputes will need to anticipate and respond to the risk that their disputes could quickly turn criminal.
Off-ramping a criminal investigation, or clearing one’s name in a criminal prosecution for alleged trade secret theft, requires a keen understanding of criminal and civil U.S. trade secret laws, as well as the intersection of intellectual property and national security matters.

Client Alert October 21, 2019

Clearing Your Name against U.S. Civil Trade Secret Theft Claims

In light of the ongoing PRC-U.S. trade dispute, Chinese companies are more likely to face charges in U.S. courts against civil claims of trade secret theft.
Civil trade secret misappropriation cases in U.S. courts can be particularly complex and high-stakes for Chinese companies on the defensive end of cross-border disputes.
Chinese companies, their executives and legal representatives should familiarize themselves with U.S. IP protection standards in the face of pending cross-border litigation.

Client Alert July 24, 2019

China’s Belt and Road Initiative Could Lead to a Trail of Global Corruption Investigations

For those considering investing in projects tied to China’s Belt and Road Initiative (BRI), corruption and bribery are major areas of concern.
In the event of fraud or misconduct allegations, parties and their counsel will need to understand and anticipate how global anti-corruption enforcers might approach such investigations.
Carrying out a series of “stress tests” or appointing an independent third-party examiner are two examples of proactive measures companies can take to mitigate the risk of being on the wrong end of an anti-corruption investigation.

Client Alert June 18, 2019

Extradition & Due Process: U.S. Asylum Seekers Are on “Notice” Too

The January 2017 Executive Order “Enhancing Public Safety in the Interior of the United States” broadens the categories of immigrants who can face deportation to include those who pose, in the judgment of an immigration officer, a “risk to public safety or national security.”
Under “Project Red,” ICE has collaborated with state and local law enforcement agencies, the United States Marshals Service, Europol, and Interpol to target and arrest individuals wanted by foreign governments. This is a departure from precedent for the U.S.
In a recent demonstration of Project Red, ICE arrested 105 immigrants and foreign nationals in a five-day enforcement operation in New Jersey. Several of these individuals were the subject of Interpol Red Notices for alleged crimes in their home countries.

Client Alert June 5, 2019

To Catch a Debtor: Seizing the Money

Chinese businesses tend to favor offshore jurisdictions for setting up joint venture (JV) structures, but deadlock can ensue if partners differ into a dispute.
A litany of offshore legal tools exists, from provisions in the JV's constitutional documents to the appoint of a receiver to restore control to the wronged party.
However, the process for deploying these options differ based on each jurisdiction, and it is advisable to seek counsel before acting on any strategy.

Client Alert May 30, 2019

Don’t Overlook China in Difficult Chapter 11 Asset Recovery Efforts

In U.S. Chapter 11 cases (especially those involving unsecured creditors), non-traditional asset sources often offer the best hope of recovery.
Assets based in China can present surprising asset recovery opportunities for U.S. creditor committees.
There is a range of options at a committee's disposal to unlock value from claims against PRC entities, and experience, creativity and local support on both sides of the Pacific are essential to securing monetization.

Client Alert May 22, 2019

U.S. Increasingly Enforcing Against India

Relations between India and the U.S. have recently experienced a few blows, including the termination of the former's preferential trading status with the U.S.
For future Indian defendants, it will be of paramount importance to understand the strategies and tactics of U.S. enforcement agencies in charge of bribery, national security and fraud investigations.
When regulators come knocking, those who choose to sit idly by will find themselves at a disadvantage.

Client Alert May 15, 2019

“Cartels Beware”: U.S.-Korea Antitrust Enforcement Likely to Reach a New Scale

A recent meeting between antitrust enforcers from South Korea and the U.S. signals an increase in future collaboration between the U.S. Department of Justice (DOJ) and Korea Fair Trade Commission (KFTC) on cross-border criminal antitrust enforcement.
A greater degree of DOJ-KFTC collaboration will result in increasingly complex multinational antitrust litigation.
When these enforcers take collaborative actions, targets will require equally coordinated defense strategies - likely combining the knowledge of both Korea and U.S. antitrust specialists.

Client Alert May 8, 2019

To Catch a Debtor: Freezing the Money

International creditors continue to face significant challenges when monetizing claims against debtors based in the People's Republic of China.
Actions such as a standalone freezing injunction can be used in English common law jurisdictions to freeze assets that are held by innocent third parties.
Injunctions and receiverships can be made without giving notice to the debtor, bestowing the "element of surprise."

Client Alert April 3, 2019

To Catch a Debtor: Finding the Money

For international creditors, monetizing claims against debtors located in the People’s Republic of China has proven difficult.
The first challenge is finding where the assets are, specifically via offshore discovery.
Time is of the essence, and “freezing” the money is next.