Anwar et al v. Fairfield Greenwich Limited et al

Filing 1248

ENDORSED LETTER addressed to Judge Victor Marrero from Leslie Gordon Fagen dated 3/5/2014 re: Counsel for defendants The Citco Group Ltd., Citco Fund Services (Europe) B.V., Citco (Canada) Inc. Citco Global Custody N.V., Citco Bank Nederland, N.V., Dublin Branch, and Citco Fund Services (Bermuda) Ltd., writes in response to the letter dated 2/28/2014 from the Anwar plaintiffs. ENDORSEMENT: The Clerk of Court is directed to enter into the public record of this action the letter above submitted to the Court by the Citco Defendants. (Signed by Judge Victor Marrero on 3/6/2014) (tn)

2014-03-05 16:25

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PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

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, DOCCi\JE:\r

The Honorable Victor Marrero
United States District Judge
Daniel Patriek Moynihan United States Courthouse
500 Pearl Street, Room 1040
New York, New York 10007-1312

!U,ECTRO:\IC/\LLY I'lL[D

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Anwar, et af v. Fairfield Greenwich Limited, et al.,
No. 09-cv-118 (VM) (FM)
Dear Judge Marrero:
We represent defendants The Citco Group Ltd., CiteD Fund Services
(Europe) RV., Citco (Canada) Inc., CiteD Global Custody N.V., Citeo Bank Nederland,
N.V., Dublin Branch, and CiteD Fund Services (Bermuda) Ltd. (collectively, the "CiteD
Defendants"). We are writing on behalf oftne Citco Defendants, defendant
PricewaterhouseCoopers LLP, and defendant PriccwatcrhouscCoopers Accountants, N.V.
(collectively, the "Anwar Defendants") in response to the letter dated February 28, 2014,
from the Anwar plaintiffs ("Pls.' Ltr.," ECF No. 1247) conceming the Supreme Court's
decision in Chadbourne & Parke LLP v. Troiee, No. 12-79,2014 WL 714697 (U.S. Feb.
26,2014).
In their letter, the Anwar plaintiffs assert that Chadbourne "obviates any
need for reconsideration" of this Court's SLUSA rulings. (PIs.' Ltr. at 1.) But the Anwar
Defendants, unlike the defendants in the Standard Chartered Bank ("SCE") cases, have

2014-03-05 16:25

PAUL WEISS 12123732810 » 212 805 6382

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PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

The Honorable Victor Marrero
United States District Judge

2

not requested leave to tile further motions concerning SLUSA at this time.
Consequently, there is currently no application or motion before the Court thaL asks Lhe
Court to take any further action on the SLUSA issues presented by Anwar. The Anwar
Defendants do not now seek reconsideration of the SLUSA issues presented by Anwar in
light of Chadbourne.
To be sure, the Anwar Defendants believe that SLUSA, as interpreted in
Chadbourne, precludes the claims asserted against those defendants for reasons similar to
those set forth in the letter dated March 3, 2014, from the SeB defendants to Your Honor.
(ECF No. 1246.) The Anwar Defendants also continue to believe, however, that this
Court should defer any further decision on the SLUSA issues presented by Anwar until
the Second Circuit issues a decision in In re Kingafe Management Limited Litigation,
No. 11-1397 (2d Cir. argued Apr. 9,2013). Kingare, like Anwar, is an action by
investors in so-called Madoff "feeder funds" against, among other defendants, the
administrator and the independent auditors for the funds. Judge Batts dismissed aU of the
Kingate plaintiffs' claims as precluded by SLUSA. Kingate, No. 09 Civ. 5386 (DAB),
201l WL 1362106, at *5-9 (S.D.N.Y. Mar. 30,2011). As the sale additional basis for
her decision, Judge Batts also ruled that plaintiffs' claims were barred by New York's
Martin Act. ld. at *9-10. As the parties to the Kingate appeal have acknowledged,
however, that basis for her decision is no longer viable after the decision of the New
York Court of Appeals in Assured Guaranty (UK) Ltd. v. JP. Morgan investment
Management Inc., 962 N.E.2d 765 (N.Y. 2011). See, e.g., Brief for Defendants­
Appellees Tremont (Bermuda) Ltd. et al. at 45 f).23, Kingate, No, 11-1397 (2d CiT. Aug.
20,2012), ECF No. 126. Accordingly, the briefing in Klngate before the Second Circuit
focused on the SLUSA issues. The Second Circuit appears to have held Kingate until the
Supreme Court decided Chadbourne, The parties to Kingate have filed letters with the
Second Circuit debating the consequences of Chadhourne for that appeal. Kingate,
No. 11-1397 (2d Cir. letters filed Feb. 27 & 28, 2014), ECF Nos. 240, 242. The Kingute
appeal thus appears ready for decision by the Second Circuit.
After the Second Circuit decides Kingate, this Court and the parties to
Anwar are likely to be far better positioned to assess precisely how the principles
announced in Chadbow'ne should apply in the factual setting of Anwar. If, on the other
hand, this Court were to revisit the SLUSA issues presented by Anwar before the Second
Circuit decides Kingate, this Court might well be asked to revisit those same issues yet
again following the Second Circuit's decision in Kingate. The latter course, it seems to
us, would not be an efficient deployment ofjudicial resources.

2014-03-05 16:25

PAUL WEISS 12123732810 » 212 805 6382

P

PA-JL. WEISS, RIFKIND. WHARTON & GARRISON LLP

3

The Honorable Victor Marrero
United States District Judge

If, however, the Court is inclined to revisit the SLUSA issues presented by
the seB cases before the Second Circuit decides Kingate, the Anwar Defendants
respectfully request that they be given the opportunity to participate in any briefing or
conferences on those issues.

cc:

All counsel of record (bye-mail)

The Clerk of Court is directed to enter into the public record

: ! action the letter above Submitted! ~he Court by
~~~~4/~~ ~4\U
SO ORDERED.

3-~--/f'/
DATE

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