Special Situations Disputes

Kobre & Kim is called upon by major corporations, investment funds and portfolio companies to litigate high-stakes trials and other commercial disputes adverse to major financial institutions and non-bank lenders. Many of our matters – including inter-creditor litigation; M&A and corporate governance disputes; antitrust and competition litigation; and securities, derivatives and structured products litigation – require global strategies and cross-border execution.

Inter-Creditor Litigation

Kobre & Kim represents private equity sponsors, syndicated lenders and bondholders in high-stakes creditor disputes requiring the ability to be adverse to financial institutions and non-bank lenders. Our experience includes representing:

Minority bondholders of Incora (aka Wesco Aircraft) in pursuing claims to void super prioritization and “up-tiering” of debt led by its private equity sponsor.
The private equity sponsors of Travelport in defending claims relating to a “drop-down” transaction undertaken by Travelport.
The senior secured lender group in enforcing their rights in Revlon Inc.’s Chapter 11 case with respect to Citibank N.A.’s mistaken US $900 million wire transfer.
Marble Ridge Master Fund LP as creditor in the widely publicized Neiman Marcus Chapter 11 case and adversary proceeding.
Certain lenders in defending claims attacking a super-priority “up-tier” transaction involving restaurant services provider TMK Hawk Parent, Corp. (Trimark).
Asset managers in litigation concerning a cross-border bond restructuring in the real estate sector.

Special Disputes Involving Alleged Fraud and Misconduct

Kobre & Kim acts in a variety of high-profile commercial disputes. Our experience includes representing:

Global management consulting firm McKinsey & Co. and affiliates in defending litigation brought by Jay Alix, founder of Alix Partners, alleging federal RICO violations.
Jump Trading in defending it in a class action alleging securities fraud and RICO violations in connection with the collapse of certain cryptocurrencies.
K2 Integrity, founded by Jules Kroll and Jeremy Kroll, in trademark and fair use litigation against KROLL (formerly Duff & Phelps).
A fund in legal actions in the English High Court and New York courts relating to the recovery of over US $100 million of cryptocurrency stolen from certain protocols.

M&A and Corporate Governance Disputes and Independent Investigations

Kobre & Kim represents companies, boards and other stakeholders in disputes related to high-value M&A and corporate governance. Our experience includes representing:

Twitter, Inc. with respect to its high-profile, expedited Delaware litigation against Elon Musk seeking to enforce Musk’s contract to close the US $44 billion transaction. Acting as conflicts counsel, Kobre & Kim, among other things, handled the offensive discovery against Musk’s financial advisor, Morgan Stanley & Co., and the 12 banks that agreed to finance Musk’s acquisition.
Intercontinental Exchange Inc., the United States’ largest provider of home mortgage loan origination systems, in handling certain offensive discovery with respect to the FTC’s challenge of its proposed acquisition of Black Knight, Inc.
European trust in litigation stemming from US $300 million acquisition of European portfolio company managed by New York-based private equity sponsor.
Group of over 100 former AIG Financial Product Corp. employees seeking to recover several hundred million in deferred compensation.
CEO and General Counsel of Better.com in a lawsuit alleging labor law violations and breach of fiduciary duty.

We are also regularly called upon to undertake independent investigations on behalf of corporate boards. We have represented:

Special Board committee of a large financial services corporation in investigating shareholder demand related to antitrust challenges and associated expenses.
Board of Directors of Fortune 500 Company in investigating shareholder demand letters challenging a failed M&A transaction.

Securities, Derivatives and Structured Products Litigation

Kobre & Kim represents asset managers, investment funds and other market participants in disputes involving equity and fixed income securities and complex derivatives. Our experience includes representing:

Multiple mortgage-backed securities vehicles as special litigation counsel, involving several billion dollars in claims.
ETF manager in litigation with Nasdaq and its venture partner stemming from disputed multi-party joint venture transactions.
Market-maker and high-frequency trader in dispute with self-regulated organization.
Major airline in Financial Industry Regulatory Authority (FINRA) arbitrations of US $400 million+ against Merrill Lynch, Oppenheimer & Co. and Lehman Brothers relating to structured products, including auction-rate securities.
Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac, in litigation against various major Wall Street banks (including Bank of America, JP Morgan Chase, Merrill Lynch, Credit Suisse and others) in litigation concerning mortgage-backed securities.
King Street Capital in litigation against major Wall Street banks concerning the trusteeship of a Collateral Debt Obligation product.
Technology company in fighting multiple claims against third parties due to its induced investment in a Ponzi scheme.

Antitrust and Competition Litigation

We regularly act as special counsel in antitrust and other competition-related disputes, to both corporations and individuals—often working alongside clients’ existing legal teams. Our global team includes a mix of commercial litigators and former U.S. government attorneys, including a former federal prosecutor from the Department of Justice Antitrust Division (DOJ Antitrust).

Civil Antitrust Experience:

Representation of special committee in investigation into potential antitrust issues, in connection with company restructuring.
Representation of Kraken, a cryptocurrency exchange, and its CEO, Jesse Powell, in achieving dismissal of the first ever cryptocurrency civil antitrust action filed in U.S. federal court.
Representation of large freight forwarding company in connection with civil antitrust class action litigation in New York federal court, as well as related internal investigation.
Representation of former CFO in multidistrict litigation and action by the FTC for anticompetitive conduct in connection with acquisition by a multinational corporation.
Representation of elder care company in pursuing relief under insurance-related settlement decree with the Antitrust Bureau of the New York Attorney General’s Office.
Representation of building materials company in exploring options to rectify supply chain issues.

Merger Challenges and Litigation Experience:

Representation of Intercontinental Exchange (ICE) in the Federal Trade Commission (FTC)’s challenge to the $12 billion acquisition of Black Knight, a mortgage software company. Kobre & Kim handled offensive discovery against numerous market participants, working alongside Morgan Lewis, ICE’s lead counsel.
Representation of Viridian Therapeutics, a biotechnology company and key third party, in the FTC’s challenge to Amgen’s $28 billion acquisition of Horizon Therapeutics.
Representation of company on Hart-Scott-Rodino filing issues.

Non-Antitrust Competitive Disputes Experience:

Representation of McKinsey in RICO litigation brought by Jay Alix, founder of Alix Partners, relating to conduct in the bankruptcy consulting market. Kobre & Kim, working alongside Debevoise & Plimpton, achieved a complete victory for McKinsey by attacking the assignment under which Alix brought the claims and demonstrating that Alix did not have standing to sue.
Representation of Daewoong Pharmaceuticals, one of the largest pharmaceutical companies in Asia, in global trade secret litigation dubbed “the Botox War," including expedited litigation before the International Trade Commission (ITC).
Representation of biotechnology company and its U.S. subsidiary in defense of trade secret claims brought by a competitor before the ITC, resulting in a favorable decision dismissing the allegations as meritless.
Representation of Propel Fuels, an innovator in the renewable fuels market, in bet-the-company trade secret litigation against Phillips 66, one of the world’s largest petroleum companies. Kobre & Kim obtained a $604.9 million verdict after a five-week trial, proving claims of trade secret theft arising out of negotiations to acquire Propel.