Case Updates

REID COLLINS DEFEATS SUMMARY JUDGMENT MOTION IN LOUISIANA FEDERAL COURT, MOVING PRO BONO DISCRIMINATORY POLICING CIVIL RIGHTS LAWSUIT CLOSER TO TRIAL

On July 26, 2022, Reid Collins obtained a key ruling on behalf of Teliah Perkins, a Black woman from Slidell, Louisiana, who was violently arrested at her own home in response to a minor traffic violation she did not commit. (Reid Collins is representing Ms. Perkins pro bono in partnership with the ACLU of Louisiana’s “Justice Lab” initiative.) The Hon. Wendy B. Vitter of the U.S. District Court for the Eastern District of Louisiana denied the bulk of the motion for summary judgment of the defendants, two St. Tammany Parish Sheriff’s Office deputies. The Court held that the deputies are not entitled to qualified immunity on excessive force and First Amendment claims, as the facts and testimony show the violation of multiple, clearly established constitutional rights, including the right to be free from unreasonable force, and the right of a minor child to peacefully record the police in his own driveway without the threat of physical harm.

Click here to view Judge Vitter’s summary judgment opinion.

Click here to view the Perkins complaint.

Click here to learn more about the Justice Lab project.

Click here to see prior Associated Press coverage of the case.

Click here to see Texas Lawyer coverage of the ruling.

 

COURT APPROVES $300 MILLION SETTLEMENT OF RENREN DERIVATIVE LITIGATION – ONE OF LARGEST DERIVATIVE RECOVERIES IN HISTORY

On June 9, 2022, the New York State Supreme Court granted approval of a direct pay cash settlement totaling at least $300 million, resolving the In re Renren, Inc. Derivative Litigation – one of the largest cash settlements of a derivative action in history. (The aggregate cash payment to Renren’s minority shareholders and ADS holders may exceed $300 million depending on the final determination of the number of shares and ADSs held by non-Defendants). The action alleges a complex scheme by Renren insiders to take the company’s billion-dollar investment portfolio for themselves.  Reid Collins & Tsai LLP, Lead Counsel for the derivative plaintiffs, originally announced the terms of the settlement in October 2021.

The precedent-setting case will have long term impacts for protecting investors from cross-border fraud and financial misconduct. In both trial court and on appeal, Reid Collins defeated attempts by the Defendants to dismiss the case and evade accountability, with the courts accepting Reid Collins’ arguments addressing novel issues on personal jurisdiction and standing. Facing significant legal challenges to acquire U.S. jurisdiction over multiple foreign defendants and establish derivative standing under Cayman law, these wins by the Reid Collins team have created new precedent to combat a growing problem in the financial sector – the difficulty in addressing fraud and wrongdoing by foreign companies (and related individual actors) publicly traded in the U.S.

Click here to view the press release describing the litigation and ruling.

The case and settlement have received significant media coverage:
The New York Times – “Renren, SoFi and a $300 million settlement” (scroll down)
Financial Times – “US-listed Chinese group Renren settles investor complaint for $300m”
Reuters – “‘Facebook of China’ shareholders score $300 million in cross-border derivative deal”
Bloomberg – “Renren Insiders Settle SoFi Stake Suit in $300 Million Deal”
Law360 – “Renren Investors To Settle Derivative Claims With $300M Deal
AmLaw Litigation Daily – “Litigators of the Week”

 

NEW YORK COMMERCIAL DIVISION SUSTAINS AIDING AND ABETTING FRAUD AND FRAUDULENT INDUCEMENT CLAIMS RELATED TO TRANSMAR BANKRUPTCY

On July 2, 2022, Reid Collins defeated a motion to dismiss an action in a case relating to the bankruptcy of defunct cocoa company Transmar Commodity Group. Our clients, a group of eight banks that funded Transmar through a syndicated revolving credit line, brought claims against the asset manager AMERRA Capital Management, several funds managed by AMERRA Capital Management, and AMERRA co-founder, Nancy Obler, for their acts in connection with the massive financial fraud that led to the bankruptcy of Transmar Commodity Group. Justice Andrea Masley of New York Supreme Court, Commercial Division held that Plaintiffs pleaded valid aiding and abetting fraud, fraudulent inducement, and breach of contract claims, which seek hundreds of millions in damages and interest. Read the decision here.

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Prior results do not guarantee a similar outcome.