Anwar et al v. Fairfield Greenwich Limited et al

Filing 1270

ANSWER to Complaint. Document filed by CITCO Bank Nederland N.V. Dublin Branch.(Gordon, Andrew)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
ANWAR, et al.,
Plaintiffs,
v.
Master File No. 09-cv-118 (VM)
FAIRFIELD GREENWICH LIMITED, et al.,
Defendants.
This Document Relates To: All Actions

ANSWER OF DEFENDANT THE CITCO BANK NEDERLAND N.V. TO
AMENDED PARAGRAPHS 180 AND 335 IN PLAINTIFFS’ SECOND
CONSOLIDATED AMENDED COMPLAINT
Defendant Citco Bank Nederland N.V., Dublin Branch (“Citco Bank
Nederland”), by and through undersigned counsel, hereby files this Answer to amended
paragraphs 180 and 335 in Plaintiffs’ Second Consolidated Amended Complaint
(“SCAC”):
180.

Citco Bank Nederland denies the allegations set forth in paragraph 180 of

the SCAC, except admits that the Fairfield Greenwich Group and the other Fairfield
Defendants were responsible for the contents of the Funds’ private placement and
confidential offering memoranda and the Funds’ marketing materials, and further
responds that to the extent paragraph 180 states a legal conclusion, no response is
required.
a. Citco Bank Nederland denies the allegations set forth in paragraph 180(a)
of the SCAC, except responds that to the extent paragraph 180(a) states a
legal conclusion, no response is required, and further refers the Court to

the subscription materials referenced herein for a complete and accurate
statement of their contents.
b. Citco Bank Nederland denies the allegations set forth in paragraph 180(b)
of the SCAC.
c. Citco Bank Nederland denies the allegations set forth in paragraph 180(c)
of the SCAC, except Citco Bank Nederland denies information and
knowledge sufficient to form a belief as to whether the referenced
individuals were based out of Fairfield Greenwich Group headquarters in
New York., and further refers the Court to the referenced 2002 email for a
complete and accurate statement of its contents.
d. Citco Bank Nederland denies the allegations set forth in 180(d) of the
SCAC, except refers the Court to the referenced document for a complete
and accurate statement of its contents.
e. Citco Bank Nederland denies the allegations set forth in paragraph 180(e)
of the SCAC, except admits that, during the time period they served as
administrators, Citco (Canada) Inc. (“CCI”) and Citco Fund Services
(Europe) B.V. (“CFSE”) would issue contract notes, and that CCI and
CFSE completed certain Know-Your-Customer and Anti-MoneyLaundering procedures on potential fund subscribers.
f. Citco Bank Nederland denies the allegations set forth in paragraph 180(f)
of the SCAC, except admits that “Citco” was not the seller of interests in
the Funds, and further refers the Court to the subscription agreements
referenced herein for a complete and accurate statement of their contents.

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g. Citco Bank Nederland denies the allegations set forth in paragraph 180(g),
except refers the Court to the subscription agreements referenced herein
for a complete and accurate statement of their contents.
h. Citco Bank Nederland denies the allegations in paragraph 180(h) of the
SCAC, and further responds that to the extent paragraph 180(h) states a
legal conclusion, no response is required.
335.

Citco Bank Nederland denies the allegations set forth in paragraph 335 of

the SCAC, except admits that, during the time period CFSE and CCI served as
administrators, the number of shares that Plaintiffs received in exchange for their
investments was based on CCI’s or CFSE’s NAV calculations, and that Plaintiffs sent
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their subscription materials to one or more Citco Defendants.

a. Citco Bank Nederland denies the allegations set forth in paragraph 335(a)
of the SCAC, except admits that, during the time period they served as
administrators, CCI and CFSE received subscription documents from fund
subscribers after fund subscribers had made their investment decision and
issued contract notes after certain procedures had been completed by CCI
and CFSE resulting in the acceptance of fund subscribers as fund
investors. Citco Bank Nederland further refers the Court to the
subscription documents referenced herein for a complete and accurate
statement of their contents.

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Although Citco Bank Nederland provides an answer to Plaintiffs’ new allegations, it
notes that Plaintiffs’ negligence based inducement causes of actions were dismissed
against it pursuant to the Court’s August 18, 2010 order and have not been reinstated.
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b. Citco Bank Nederland denies the allegations set forth in paragraph 335(b)
of the SCAC, except admits that during the time period they served as
administrators, CCI and CFSE performed certain NAV calculations and
that the Funds’ NAV, as calculated by CCI or CFSE, determined the
number of shares allocable to fund investors for both initial and
subsequent investments. Citco Bank Nederland further refers the Court to
the Citco Fund Services Procedures Manual for a complete and accurate
statement of its contents.
c. Citco Bank Nederland denies the allegations set forth in paragraph 335(c)
of the SCAC, except admits that, during the time period they served as
administrators, CCI and CFSE provided fund investors with monthly NAV
statements. Citco Bank Nederland further refers the Court to the NAV
statements and the referenced procedures manual for a complete and
accurate statement of their contents.

Dated: New York, New York
June 4, 2014
PAUL, WEISS, RIFKIND, WHARTON & GARRISON
LLP
1285 Avenue of the Americas
New York, New York 10019-6064
[phone]

By:

/s/ Andrew G. Gordon
Andrew G. Gordon ([e-mail])

Attorneys for Defendant Citco Bank Nederland N.V.,
Dublin Branch
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