Matters

Pharmaceutical Company – Dismissal from Consumer Fraud Class Action

Herrick secured a significant win for a pharmaceutical company in a New Jersey federal court ruling dismissing our client from a putative class action for failure to state a claim. The wide-ranging lawsuit involved allegations concerning alleged violations of consumer fraud laws in the marketing of product.

National Energy Services Provider – Certification Denied in Consumer Fraud Class Action

Achieved a significant victory on behalf of a national energy services provider by defeating class certification sought by plaintiffs in a putative class action in Pennsylvania federal court, which targeted our client’s affiliate. Claiming to have been the victims of a scheme that “locked” them into variable rate contracts charging purportedly inflated rates for electricity service, plaintiffs sought certification allowing them to sue on behalf of practically anyone currently living in Pennsylvania that ever entered into a variable rate residential electric contract with the company. In its ruling, the court denied class certification on typicality, adequacy, predominance, and commonality. Herrick continues to represent the client on the plaintiffs’ appeal.

Private Equity Credit Investing Arm – Disability Insurance Dispute

Representing the credit investing arm of a publicly traded private equity firm, with $19 billion under management, in a dispute with insurers over payment of disability benefits under a multimillion dollar "key man" policy insuring our client's former co-chief executive officer.

Electricity Supplier – Class Action Alleging Violations of the Telephone Consumer Protection Act

Defending a national electricity services provider in a putative class action in New Jersey federal court alleging violations of the Telephone Consumer Protection Act.

Multinational Tire Manufacturer – Consumer Fraud Class Action Defense

Successful defense of the North American subsidiary of a multinational automotive parts manufacturer in national consumer fraud class actions involving allegations that an innovative tire design was more susceptible to road hazard damage than regular tires. The firm’s successes on behalf of the client include obtaining an important, precedent setting decision from the Third Circuit Court of Appeals that vacated the lower court’s certification of a limited New Jersey sub-class of plaintiffs, and then later securing the dismissal of all but one of the claims asserted in a copycat class action, effectively precluding the plaintiffs from further pursuing the litigation.

Building Materials Manufacturer – Product Liability Disputes

Representing major manufacturer of commercial and residential roofing in multiple warranty claims.

Red Rock Services Trustee – Appellate Victory in Bankruptcy Litigation

Herrick secured an appellate victory for the chapter 7 trustee of bankrupt demolition subcontractor Red Rock Services, affirming a judgment of almost $1 million won in a bankruptcy adversary proceeding in the Eastern District of Pennsylvania. On behalf of the trustee, Herrick sued a general contractor for breach of its obligations under subcontracts with Red Rock in a pair of multimillion dollar construction projects in Baltimore and Boston. After eight days of trial, the trustee was awarded a judgment of almost $1 million, including attorneys' fees. Herrick defended the judgment on appeal to the district court, where it was affirmed, and went on to successfully defend the ruling on the defendant’s second appeal to the Third Circuit, which affirmed the judgments of the bankruptcy court and district court in their entirety.

Life Settlement Investment Firm – Advice and Litigation

Representation of a German investment firm with respect to its investment portfolio of U.S. life insurance policies. In addition to providing advice concerning life settlement laws and regulations in various jurisdictions, Herrick has also represented the company in litigation on its disputed claims in multiple jurisdictions. In 2012, Herrick procured a multi-million dollar settlement for the client, almost 90 percent of the policy value, in New Jersey federal litigation in which the carrier contested the claim as a likely STOLI ("stranger originated life insurance") policy. More recently, in 2013, Herrick settled a large claim filed in Pennsylvania federal court in which our client received approximately 70 percent of the policy value in a case where the age of the insured, a former Syrian national, was disputed. Herrick will continue to represent the client on U.S. claims going forward.

Turkish Exporter – Favorable Jury Verdict and Judgment in Breach of Contract Litigation

Obtained favorable jury verdict and judgment on behalf of a Turkish furniture exporter asserting breach of contract claims in New Jersey federal court against a former business partner and the former head of the client’s U.S. affiliate.

Registered Investment Advisor – Business Divorce Dispute

Herrick represented the co-founder of a successful mutual fund RIA in a business divorce dispute with his partner brought in Pennsylvania state court. After the parties agreed to submit their claims to arbitration, Herrick's client prevailed following a two week hearing. The arbitrator found that our client's ex-partner had breached his fiduciary duties, and made a substantial award to our client.

Madoff Litigation – Filings Against the SEC

We represent a number of victims of Bernard Madoff's Ponzi scheme. In January of 2009, we filed notices of claim with the Securities & Exchange Commission alleging negligence under the Federal Tort Claims Act. The SEC rejected our claims six months later, and on Wednesday, October 14, 2009, we filed the historic and first known lawsuit against the SEC seeking monetary damages under the FTCA, Molchatsky and Schneider v. United States. We were lead counsel on the Molchatsky case and filed two additional cases against the United States on behalf of other Madoff victims. While the Second Circuit ultimately dismissed the action, essentially saying that the SEC had absolute immunity, the case sent a message that Herrick will leave no stone unturned on behalf of its clients. The firm continues to defend Madoff victims in clawback actions initiated against them by the Madoff bankruptcy trustee.

Consumer Products Retailer – Partnership Dispute

Representation of three partners in a 'bet the company' lawsuit brought in New Jersey state court by the fourth partner, who claimed to be an oppressed minority shareholder. Herrick defeated the plaintiff's order to show cause seeking injunctive relief including the appointment of a receiver, and then obtained a dismissal of the lawsuit based on arbitration agreement.

Insurance Producer – Commission Dispute

Herrick represented an insurance producer embroiled in an arbitration with a former client over unpaid commissions. The arbitration resulted in a recovery of over $1 million.

Winstar Communications Trustee – Bankruptcy Appeal

Representation of the Trustee for Winstar Communications in an adversarial proceeding asserting claims of insider/voidable preference, equitable subordination and breach of contract, against Lucent Technologies. After winning at the bankruptcy court level following a one month trial and an initial appeal to the US District Court, we successfully argued to the US Third Circuit Court of Appeals in a case then valued at about $340 million. The Third Circuit affirmed the courts below and found that Lucent was an insider of Winstar. In so ruling, the court also upheld the Trustee's arguments regarding earmarking, new value, core versus non-core jurisdiction, right to jury trial and equitable subordination. The American Bankruptcy Institute Journal, in its April 2009 issue, featured the Third Circuit decision and wrote that the case “opens an entirely new and extensive arena in bankruptcy-preference litigation that may cause profound changes in both preference-risk assessments and creditor behavior.”

Insurer – Regulatory and Administrative Advice

Representation of an insurer with respect to the regulatory and administrative aspects of its rebate programs, including audit advice as well as representation in disputes with pharmacy benefits managers.

Finance Company – Ponzi Scheme Foreclosure

Representation of a finance company in its foreclosure of a commercial property placed in receivership due to the collapse of an alleged Ponzi scheme by the ownership entity.

NYSE Company – Internal Investigation

Representation of the Audit Committee of a New York Stock Exchange listed company to conduct an internal investigation of whistleblower claims brought by a former officer alleging that certain officers and directors had committed accounting fraud and violated the Sarbanes-Oxley Act.

Real Estate Investment Management Companies – Construction Litigation

We defended a large industrial real estate investing entity and its investment management firm in a $90 million construction defect litigation with an industrial tenant in New Jersey. We succeeded in getting most of the plaintiff’s case dismissed on summary judgment, and then settled the rest of the dispute case before trial. The settlement included the plaintiff turning over escrowed back rent to our client and entering into a favorable lease extension.

National Retail Brokerage Firm – Civil Litigation

Representation of a national retail brokerage firm in a state court action alleging sales practice violations.

Real Estate Company – Management Agreement Litigation

Representation of a real estate services company in a $20 million lawsuit brought by former customers. The former customers, owners of two large NYC office buildings, claimed that our client, which managed the buildings, had committed numerous acts of wrongdoing over several years, including breaching the contracts, fraud, and breaching fiduciary duties. The customers sought to recover all the fees they’d paid our client over the years under New York’s “faithless servant” doctrine. The District Court granted our summary judgment motion, dismissing all of the higher-damage tort and equity claims, and we then settled the remaining breach of contract claim. The former customers lost their appeal to the Second Circuit Court of Appeals, bringing the case to a successful conclusion for our client.

Investor Group – Fraud and Misrepresentation Claims

Represented an investor group in connection with fraud and misrepresentation claims against an investment manager in various private investments.

Solar Energy Company – Breach of Contract

Representation of a solar energy company in connection with an employee's suspected breach of a non-compete agreement and breaches of fiduciary duty. Herrick advised the company on how to terminate the rogue employee and to secure evidence relating to any unfair competition engaged in by a competitor.

Retail Brokerage – NYSE Investigation

Representation of a national retail brokerage firm in claims brought by the Enforcement Division of the New York Stock Exchange relating to proxy procedures used on an industry-wide basis. The case was favorably resolved after discovery.

First Allied Securities – NASD Arbitration

Representation of First Allied Securities in an NASD arbitration in Seattle, Washington involving claims against a competitor for raiding an entire division of the company, including multiple brokers in multiple offices.

Woolsulate – Lurgi Lentjes Arbitration

Representation of Woolsulate Corp., a New Jersey insulation contractor, in pursuing claims in mediation and arbitration against Lurgi Lentjes, a German energy company, to recover amounts due for services provided by Woolsulate at a PSE&G facility in Trenton, New Jersey.

Medical Device Company – Raiding

Representation of a medical device company in avoiding litigation threatened by a competitor over our client's hiring of several of the competitor's employees.

Medical Device Company – Employment Contract Litigation

Representation of a medical device company, and two individuals in a litigation brought in New Jersey state court by a competitor. The plaintiffs claimed that our clients had violated restrictive covenants in two former employees' contracts, and sought injunctive relief and damages. The Court denied injunctive relief, and the case settled before discovery with no payment by our clients.

Developer – Construction Litigation

Representation of a developer in a multiparty litigation involving alleged construction defects resulting from the conversion of a 17-story refrigerated building into a condominium property. Herrick replaced prior counsel, and was able to quickly settle lawsuits that had been pending in both federal and state court in New York for over a year.

Winstar Communications Trustee – Bankruptcy

Representation of the Trustee for Winstar Communications in its bankruptcy case against Lucent Technologies. Following a three month bench trial, the Delaware Bankruptcy Court awarded the Trustee judgment on its bankruptcy and breach of contract claims against Lucent, finding Lucent to be an insider of Winstar. The Court also found that a $188 million payment made four months before Winstar's bankruptcy was held to be a voidable preference to be repaid by Lucent to Winstar.

Insurance Company – Reinsurance Claims

Representation of an insurance company in a run off in pursing reinsurance claims against multiple reinsurers and reinsurance pools, both foreign and domestic, including claims in both state and federal courts in New York and New Jersey.