Anwar et al v. Fairfield Greenwich Limited et al

Filing 1381

ENDORSED LETTER addressed to Judge Victor Marrero from Sharon L. Nelles and Richard E. Brodsky dated 5/27/2015 re: We write on behalf of all parties in the Standard Chartered Cases (the "Standard Chartered Parties") concerning the upcoming letter briefing on the application of In re Kingate Management Ltd Litig., 2015 WL 1839874 (2d Cir. Apr. 23, 2014) ("Kingate") to claims asserted in the Standard Chartered Cases. 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 Standard Chartered parties. (Signed by Judge Victor Marrero on 5/27/2015) (lmb)

05/28/2015 23 50 FAX

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THE BRODSKY LAW FIRM, PL

SULLIVAN & CROMWELL LLP

200 South Biscayne Blvd., Suite 1930
Miami, Florida 33131
Telephone: [phone]
Pacsimile: [phone]

125 Broad Stred
New York, New York 10004
Telephone: [phone]
Facsimile: [phone]

Counsel for rhe Maridom !'laintif.fs and
Liaison Counsel for the Standard Chartered
Plaintiffs Steering Committee

Counsel for the Standard Chartered
Defendants

May 27, 2015
By Facsimile
Honorable Victor Marrero,

United States District Judge,
Southern District of New York,
Daniel Patrick Moynihan U.S. Courthouse,
500 Pearl Street,
New York, New York 10007.
Re:

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Anwar v. Fairfield Greenwich ltd-Standard Chartered Cases,
No. 09-CV-118 (S.D.N.Y.) (VM) (FM)

Dear Judge Marrero:
We write on behalf of all parties in the Standard Chartered Cases (the "Standard
Chartered Parties") concerning the upcoming letter briefing on the application of In re Kingate
Management Ltd Litig., 2015 WL 1839874 (2d Cir. Apr. 23, 2014) ("Kingate") to claims
asserted in the Standard Chartered Cases. Pursuant to the Court's May 6, 2015 Order (Dkt.
# 13 75), the Standard Chartered Parties have met and conferred with each other and with the
parties in the Anwar class action to identify common issues and avoid duplicative briefing on this
matter. As directed by the Court in its May 6, 2015 Order, the Standard Chartered Panies
provide the following preview of the common and unique issues to be submitted in letter briefs
on May 29, 2015:

First, after conferring with the Anwar parties, the Standard Chartered Parties
anticipate two common issues: (i) Kingate's holding, generally; and (ii) the application of
Kingate to the question of whether plaintiffs' investments in Fairfield Sentry and Fairfield Sigma

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Honorable Victor Marrero

(the "Fairfield funds") constitute investments in "covered securities" under SLUSA. The
Standard Chartered Parties will not brief these issues separate from the Anwar parties, except as
necessary to identify issues unique to the Standard Chartered Cases.

Second, the Standard Chartered Parties agree that the Standard Chartered Cases
present certain unique issues with respect to the application of SL USA under Kingate, and that
the Court would benefit from limited separate briefing. Specifically, the claims asserted by the
St.andard Chartered Plaintiffs involve alleged relationships with, and allegations against, the
Standard Chartered Defendants ("SCB") that are different from allegations asserted in support of
the claims pending in Anwar. Under Kirigate, the application of SLUSA varies based on the
different relationships of the parties and the allegations involved. Thus, these is.sues will need to
be addressed separately from Ariwar.
11iird, the Standard Chartered Plaintiffs agree that, if, contrary to their position,
che Standard Chartered Cases are de1:med to be a "covered class action," SLUSA would preclude
any claim against SCB that depends on an allegation that SCB itself either negligently or
willfully misrepresented or omi~ material facts in connection with Sentry's investments with
Madoff in covered securities. The Standard Chartered Plaintiffs take the position that, even if the
Standard Chartered Cases are deemed to be a "covered class action," no other claim against SCB
would be precluded by SLUSA. SCB takes the position thac under Kingate and prior Second
Circuit precedent involving claims predicated on investment advice, SLUSA precludes, and thus
requires the dismissal of, all pending claims against SCB.
To address the unique issues in the Standard Chartered Cases, the Standard
Chartered Plaintiffs and the Standard Chartered Defendants anticipate submitting lener briefs of
no longer than 8 single-spaced pages on May 29, 2015, and reply letters of no longer than S
single-spaced pages by June 8, 2015.

JL~~
Sharon L. Nelles

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On behalf of the StaJ"ldard
Chartered Defendants

cc:

On behalf of the Standard
Chartered Plaintiffs

Standard Chartered Plaintiff.9' Steering Committee (by E-mail)

Counsel ofrecord in Anwar (by E-mail)

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