Anwar et al v. Fairfield Greenwich Limited et al

Filing 1273

ANSWER to Complaint. Document filed by Citco Global Custody N.V..(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 CITCO GLOBAL CUSTODY N.V. TO AMENDED
PARAGRAPHS 180 AND 335 IN PLAINTIFFS’ SECOND CONSOLIDATED
AMENDED COMPLAINT
Defendant Citco Global Custody N.V. (“Citco Global”), by and through
undersigned counsel, hereby files this Answer to amended paragraphs 180 and 335 in
Plaintiffs’ Second Consolidated Amended Complaint (“SCAC”):
180.

Citco Global 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 Global 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 Global denies the allegations set forth in paragraph 180(b) of the
SCAC.
c. Citco Global denies the allegations set forth in paragraph 180(c) of the
SCAC, except Citco Global 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 Global 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 Global 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 Global 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 Global 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 Global 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 Global 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 Global 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 Global 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 Global 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 re-instated.
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b. Citco Global 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 Global further refers the Court to the Citco
Fund Services Procedures Manual for a complete and accurate statement
of its contents.
c. Citco Global 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 Global 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 Global Custody N.V.

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