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LAWDRAGON NAMES SEVENTEEN REID COLLINS PARTNERS TO THE 2024 EDITION OF THE 500 LEADING PLAINTIFF FINANCIAL LAWYERS IN AMERICA

Prominent legal periodical Lawdragon profiles the work of the top lawyers and law firms across the country. In its exclusive look at practitioners representing plaintiffs in business litigation, Lawdragon has named 17 partners of Reid Collins to its 2024 list of The 500 Leading Plaintiff Financial Lawyers in America: Craig A. Boneau; Joshua J. Bruckerhoff; Keith Y. Cohan; Rachel S. Fleishman; Jeffrey E. Gross; Yonah Jaffe; J. Benjamin King; Brandon V. Lewis; Eric D. Madden; Nathaniel J. Palmer; William T. “Bill” Reid IV; Scott D. Saldaña; Gregory S. Schwegmann; Angela J. Somers; Lisa S. Tsai; Jeremy H. Wells; and Michael J. Yoder.

These Lawdragon selections cap off a year which has seen the firm win multiple industry awards, including being named the top bankruptcy firm in the nation (Benchmark) and one of the leading U.S. plaintiff commercial litigation teams (The National Law Journal).

Click here to view the 2024 Lawdragon 500 Leading Plaintiff Financial Lawyers in America.

THE NATIONAL LAW JOURNAL AGAIN SELECTS REID COLLINS AS A FINALIST FOR TOP U.S. BUSINESS TORTS LAW PRACTICE

Each year, the editors and reporters of The National Law Journal and Law.com survey the country’s top plaintiffs’ practices to create its exclusive Elite Trial Lawyers awards. In reviewing hundreds of submissions from around the nation, the NLJ identifies the firms with the most impressive wins, trial work, and recent track records. For the fourth consecutive year, the NLJ has named Reid Collins a finalist for U.S. Business Torts Law Firm of the Year. Reid Collins won the award in 2022 and 2021.

The winners will be announced at the Elite Trial Lawyers awards dinner on July 11, 2024, in New York City.

Click here to view the firm category finalists and individual honorees.

REID COLLINS DEFEATS MOTIONS TO DISMISS – FANG HOLDINGS SHAREHOLDER DERIVATIVE ACTION TO PROCEED IN NEW YORK STATE COURT
  • Nationally renowned business litigation and trial firm Reid Collins & Tsai LLP leads prosecution of shareholder derivative action against Fang Holdings Limited’s directors and controllers.
  • Court ruled that shareholder derivative action will proceed against insiders who “used and manipulated the New York financial market.”
  • Ruling is one of first shareholder derivative suits involving Cayman corporations to survive dismissal since Reid Collins’ landmark Renren, Inc. shareholder derivative litigation.

Reid Collins & Tsai LLP (“Reid Collins”) obtained a victory obtained in a shareholder derivative action brought on behalf of Fang Holdings Limited (“Fang” or the “Company”), a leading real estate Internet portal in China that is incorporated in the Cayman Islands. The action seeks nine figure relief against Fang insiders and their affiliated entities for alleged breaches of fiduciary duty and other misconduct in a complex scheme to enrich themselves and act in bad faith against Fang’s best interests.

The Hon. Andrew Borrok of the New York Supreme Court denied Defendants’ motions to dismiss the action on May 2, 2024, citing Plaintiffs’ “well pled amended complaint” which outlined how Fang’s foreign insiders “used and manipulated the New York financial market in a multi-step Transaction to loot Fang [] and enrich themselves in breach of their fiduciary duties.”

Background

The Defendants in the action include two of Fang’s inside Directors – Vincent Tianquan Mo and Richard Jiangong Dai (Mo’s nephew and his successor as Chairman of Fang) – and affiliated entities controlled by Mo and/or Dai.

Fang, a Chinese company incorporated in the Cayman Islands, went public in September 2010 with American Depositary Shares listed on the New York Stock Exchange (NYSE). As summarized in the Court’s order denying Defendants’ motion to dismiss, the “Transaction foisted upon Fang” by Defendants included: (i) a spin-off of a subsidiary (China Index Holdings Limited) (“Spinco”) in New York; (ii) causing Fang to purchase Spinco shares “both on the New York Market (which the defendants first artificially inflated and then later artificially deflated)” and from the Defendant Directors’ affiliates “at nearly double the then-market prices in New York”; (iii) causing Fang to suffer NYSE delisting to depress value of Spinco shares to buy them on the cheap; and (iv) orchestrating a take private transaction of Spinco in New York. The net result was that “Mo and Dai forced Fang to shell out approximately $130 million to buy a 35.8% minority interest” in China Index Holdings, which Fang “had owned outright (100%) just a few years prior” so that “Mo and Dai could line their pockets…at Fang’s expense.”

Echoes of “Renren” – Reid Collins has prior success holding foreign individuals and entities accountable in U.S. courts

In denying Defendants’ motions to dismiss and finding that New York courts have personal jurisdiction, the court observed that the precedent-setting Renren, Inc. shareholder derivative litigation, in which Reid Collins was lead counsel for the derivative plaintiffs, was “instructive,” noting that “[g]iven the similarities between Renren and this case, the facts of Renren bear recitation.” As in Renren (in which Reid Collins led the negotiation of a $300 million settlement), Fang involves alleged breaches of fiduciary duties by insiders of companies incorporated in Cayman Islands that are headquartered in China. In both cases, the alleged misconduct flowed through New York and New York’s capital markets. Citing the similarities with Renren, the Court concluded that “the same result is required” in Fang and found that Defendants were subject to personal jurisdiction.

The Fang shareholder derivative action follows Reid Collins’ prior success in prosecuting the Renren shareholder derivative action in New York state court to prevent abuses of New York capital markets involving companies incorporated in the Cayman Islands and headquartered abroad.

Reid Collins represents shareholder derivative Plaintiffs Oasis Investments II Master Fund Limited and Lorelei NCC Inc.

The case is captioned Oasis Investments II Master Fund Ltd., Lorelei NCC Inc. v. Vincent Tianquan Mo, et al, No. 652607/2023 (N.Y. Sup. Ct.)

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Prior results do not guarantee a similar outcome.