Anwar et al v. Fairfield Greenwich Limited et al

Filing 760

ENDORSED LETTER addressed to Magistrate Judge Theodore H Katz from Dioane McGinsey dated 11/14/2011 re: Plaintiffs have no basis for seeking the production of the Banco Santander transaction documents. ENDORSEMENT: The Court does not view the sale of SCBI assets to Banco Santander to be relevant to the merits of this action and cannot conceive of the Court involving itself in such sale. Defendants represent that the sale will not alter, the corporate status or ownership of SCBI and will not have an impact on plaintiff's ability to recover a judgment. Indeed, it can be presumed that the sale of private banking accounts will result in consideration being paid to Standard Charter. Plaintiff's request for discovery is denied. (Signed by Magistrate Judge Theodore H. Katz on 12/5/2011) (cd)

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US MAGISmATE JUDGE

November 14,2011

MEMO ENDORSED
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The Honorable Theodore H. Katz,
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Daniel Patrick Moynihan United States. cU.1\1bh'se':' •. t<i i '~
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Re:

Anwar, et al. v. Fairfield Greenwich Limited, et al.,
No. 09-cv-118 (VM) (THK)-Standard Chartered Cases

Dear Judge Katz:
I write on behalf of the Standard Chartered Defendants ("Standard
Chartered") in response to plaintiffs' letter of November 10, 2011, concerning Standard
Chartered's recently-concluded agreement to transfer certain private banking and wealth
management client relationships - along with the associated client accounts to Banco
Santander InternationaL
Plaintiffs accuse Standard Chartered of having failed to apprise them and
the Court of the Banco Santander transaction, and they ask the Court to compel Standard
Chartered to provide plaintiffs immediately with copies of "all agreements" relating to
the transaction. Plaintiffs' accusations are unfounded, and their use of motion practice to
seek discovery that has no bearing on their claims should be rejected.
Plaintiffs first raised this issue on July 25,2011, when they asked the
Court to order extensive and expedited discovery concerning a potential transaction
involving Standard Chartered Bank International (Americas) Ltd. ("SCBI"). The Court
denied plaintiffs' request but ordered Standard Chartered to apprise the Court and
plaintiffs of "any changes in SCBI's corporate status or ownership, or any other
transaction that would have an impact on Plaintiffs' ability to recover a judgment from
the Standard Chartered Defendants." (Aug. 3,2011 Order, Dkt. # 694.)

The Honorable Theodore H. Katz

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Plaintiffs incorrectly accuse Standard Chartered of failing to comply with
the Court's August 3 Order. Standard Chartered apprised the Court and plaintiffs'
counsel of its agreement with Banco Santander within days of its being finalized,
notwithstanding that even today the transaction remains subject to the consent of each
client whose account is to be transferred and approval by FINRA; and transfers of
customer accounts will not even begin until January 10, 2012, at the earliest. As
Standard Chartered has explained, the transaction will not alter the corporate status or
ownership ofSCBI; nor will it "have an impact on Plaintiffs' ability to recover a
judgment from the Standard Chartered Defendants." ld.
The Court already has rejected the notion that plaintiffs are entitled to
delve into the inner workings of a transaction merely because it involves SCBI; and
plaintiffs do not explain what use they would make of the transaction agreements if they
were to obtain them. Standard Chartered acknowledges its continuing obligation to
inform plaintiffs and the Court of any future transaction that would affect plaintiffs'
ability to recover a judgment on any of their claims. Standard Chartered will comply
with that obligation.
In light of the foregoing, plaintiffs have no basis for seeking the
production of the Banco Santander transaction documents. Plaintiffs' request for these
materials thus should be denied.

MEMO ENDORSED