Anwar et al v. Fairfield Greenwich Limited et al

Filing 1272

ANSWER to Complaint. Document filed by Citco Canada Inc..(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.

ANSWER OF DEFENDANT CITCO (CANADA) INC. TO AMENDED
PARAGRAPHS 180 AND 335 IN PLAINTIFFS’ SECOND CONSOLIDATED
AMENDED COMPLAINT
Defendant Citco (Canada) Inc. (“CCI”), by and through undersigned counsel,
hereby files this Answer to amended paragraphs 180 and 335 in Plaintiffs’ Second
Consolidated Amended Complaint (“SCAC”):
180.

CCI 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. CCI 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. CCI denies the allegations set forth in paragraph 180(b) of the SCAC.
c. CCI denies the allegations set forth in paragraph 180(c) of the SCAC,
except CCI 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. CCI 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. CCI denies the allegations set forth in paragraph 180(e) of the SCAC,
except admits that, during the time period they served as administrators,
CCI and Citco Fund Services (Europe) B.V. (“CFSE”) would issue
contract notes, and that CCI and CFSE completed certain Know-YourCustomer and Anti-Money-Laundering procedures on potential fund
subscribers.
f. CCI 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.
g. CCI 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.

2

h. CCI 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.

CCI 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 their subscription materials to one
or more Citco Defendants.
a. CCI 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.
CCI further refers the Court to the subscription documents referenced
herein for a complete and accurate statement of their contents.
b. CCI 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.
CCI further refers the Court to the Citco Fund Services Procedures
Manual for a complete and accurate statement of its contents.

3

c. CCI 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.
CCI 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 (Canada) Inc.

4