Law firms that represent banks are often weary of suing financial institutions; leaving a possibly lucrative niche for aggressive litigation teams to step in.
Well one of the busiest players in the game of suing banks is at work once again. Kasowitz, Benson, Torres & Friedman, filed a 22 page complaint in Nevada state court on thursday against some of the largest names in the financial industry. The list of defendants in the complaint include: Bank of America, Merrill Lynch, JPMorgan Chase, Barclays, Deutsche Bank, The Royal Bank of Scotland, Sumitomo Mitsui Banking, Bank of Scotland, HSH Nordbank, and MB Financial. They are accusing the banks of reneging on a $790 million revolving loan commitment to the Fontainebleau, which is a swanky, multibillion-dollar Las Vegas casino that’s in the midst of construction.
“The complaint asserts that the banks claimed Fontainebleau was in default even though it isn’t, in “‘a brazen breach of contract’” that is “‘nothing more than the banks’ baseless attempt to walk away from the project and abandon their obligations.’”
Kasowitz, who’s working with Las Vegas counsel from Morris Pickering on the case, told us this is his first work for Fontainbleau. It’s not his first suit against banks, though; as we’ve previously reported, Kasowitz sued Credit Suisse and Deutsche Bank on behalf of Hexion, before Hexion settled with Huntsman and the case was mooted. The firm has also sued banks in the National Century case (it’s co-counsel with Gibbs & Bruns), as well as any number of auction rate securities cases and in bankruptcies on behalf of bondholders.
“‘The term banks funded their $1 billion [commitment to Fontainebleau],’” Kasowitz told us. “‘It’s outrageous that the revolving banks stepped away from their $800 million obligation.’”
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