Gabor Balassa, P.C.

Fiduciary-Breach & Fraud Lawsuits

• Pharmaceutical Merger Litigation (Cook County, Ill.). Represented leading pharma company against state-law fraud claims by hedge fund investors in merger counterparty, claiming hundreds of millions of dollars in losses after merger failed. Obtained summary judgment, for which The American Lawyer awarded Litigator of the Week Runner-Up honors.
• Private-Equity Litigation (M.D. Fla.). Trial counsel for private-equity firm in billion-dollar lawsuit involving claims for conspiracy to defraud, fiduciary breach, and fraudulent transfer. Obtained complete defense verdict following three-week trial.
• Corporate-Opportunity Fiduciary-Breach Litigation (Dallas). Trial counsel for private-equity firm in six-week jury trial on $700 million claims alleging aiding and abetting and conspiracy to breach fiduciary duties. Case resolved before closing arguments.
• Tribune Fraudulent-Transfer Litigation (S.D.N.Y.). Represented Tribune Company’s second-largest shareholder against $1.5 billion fiduciary-breach and fraudulent transfer claims asserted by litigation trustee and by creditors. Obtained complete dismissal.
• Fracking-Proppant Fiduciary-Breach Litigation (S.D. Tex.). Represented diversified minerals business in litigation by unsecured creditors seeking to bring fiduciary-breach and fraudulent transfer claims against client’s former majority shareholder. After five-day trial, the court rejected the creditors’ positions in their entirety.

Breach of Contract Lawsuits

• O’Hare Airport Gate Disputes (Cook County, Ill.). Trial counsel for U.S. airline in dispute between hub airlines at O’Hare International Airport over allocation of gates, which, if enjoined, would have required canceling tens of thousands of client’s flights. After seven-day bench trial, court ruled entirely for client, denying competing airline’s attempt to block reallocation from occurring.
• Airline Contract Litigation (Chicago). Trial counsel in two-week arbitration, defending U.S. airline against $100 million contract claim by regional airline. Obtained complete defense ruling, zeroing out plaintiff.
• Sprint-Nextel Merger Litigation (Delaware Chancery). Trial counsel for Sprint affiliate in litigation seeking to enjoin Sprint and Nextel from rolling out national marketing plan in violation of Sprint affiliate agreement. Days after closing arguments, before the court ruled, Sprint-Nextel agreed to purchase the affiliate at a significant premium.
• Pharmaceutical Development Agreement Litigation (N.D. Cal.). Representing major pharmaceutical company against development partner's claims that client breached agreement to make adequate efforts in developing new drug. Representation ongoing.
• Electric Truck Litigation (Phoenix). Trial counsel for manufacturer of electric and hydrogen-powered trucks on claims for tortious interference with contract asserted by electric-vehicle competitor. Secured favorable settlement.
• Delta & Pine Land Co. v. Monsanto Co. (Bolivar, Miss.). Represented Monsanto in lawsuit alleging that Monsanto had breached its merger agreement with D&PL. Case settled after Monsanto prevailed on summary judgment against D&PL's principal damage theory that sought $1.8 billion.

Professional-Services Litigation

• Accounting Malpractice Lawsuit (Cook County, Ill.). Trial counsel for big-four accounting firm in audit malpractice lawsuit filed by former audit clients alleging the auditors should have detected fraud by plaintiffs' former CFO. After a three-week trial, the jury returned a verdict for client on all counts, including on a counterclaim against plaintiffs to recover costs and expenses.
• Accounting Malpractice Arbitration (Pittsburgh). Represented big-four accounting firm against litigation trustee’s $500 million claim that auditors should have uncovered insider fraud at beverage manufacturer that filed for bankruptcy. Arbitrators ruled for clients on all claims.
• Ponzi Scheme Litigation (D. Mass.). Defended big-four accounting firm against putative class action in MDL, claiming aiding and abetting fraud in providing tax advice to company that turned out to be a Ponzi scheme. Won dismissal of all claims on original and amended complaints.
• Accounting Malpractice Lawsuit (Tulsa, Okla.). Represented big-four accounting firm in malpractice lawsuit asserted by litigation trustee of one of the country's largest private midstream oil companies, claiming $2 billion in losses. Resolved shortly before trial.
• Accounting Malpractice Arbitration (Detroit, Mich.). Lead counsel for big-four accounting firm in arbitration concerning mutual fund’s valuation of securities. Resolved through settlement. 

Class-Action Lawsuits

• Age-Discrimination Class Action (N.D. Cal.). Represented big-four accounting firm in class and collective action alleging age discrimination by applicants to entry-level positions. Settled ahead of collective-action hearing.
• Airline Class Action Lawsuits. Represented U.S. airline in putative class-action lawsuits. Obtained dismissal of lawsuits seeking monetary awards under EU regulations (N.D. Ill.), challenging miles awards under frequent-flyer program (N.D. Ga.) and challenging ticket pricing under “Best Fare” promotion (E.D. Wis.).
• Securities Class Action Litigation (N.D. Ohio). Represented diversified minerals business in securities litigation alleging multi-year misrepresentations. Resolved through settlement.
• Property-Preservation Class Action (D. Md.). Obtained dismissal of all class claims against country’s largest property-preservation service provider.
• Groundwater Contamination Class Action (Goshen, Ind.). Trial counsel for national gasoline retailer in class action alleging station had contaminated groundwater under surrounding neighborhood. Settled shortly before trial.
• EEOC and Allison Schieffelin v. Morgan Stanley (S.D.N.Y.). Trial counsel for Morgan Stanley in first EEOC pattern-or-practice case to go to trial. Case settled after jury selection. 

Valuation and Financing Litigation

• Biotechnology Appraisal Litigation (Omaha, Neb.). Represented Omaha-based blood collection and diagnostics company and Chicago business that acquired it against appraisal lawsuit in which shareholders claimed the sale price undervalued company by over $700 million. Obtained summary judgment for all defendants.
• Airline Loan-Guarantee Litigation (N.Y. Sup. Ct.). Represented U.S. airline in litigation against hedge-fund-backed loan guarantors to enforce guarantees and collect on borrower’s payment defaults. Obtained TRO and preliminary injunctions providing the U.S. carrier’s designee with control over South American airline and defeated guarantor’s efforts to block U.S. carrier’s further financing of the South American airline.
• Noteholder/Lender Disputes. Represented E&P companies in disputes with bondholders, lenders, and transactional counterparties, regarding claimed defaults and challenges to clients’ asset transfers.

Creditor & Trustee Disputes

• Oil & Gas Merger Litigation (S.D.N.Y). Represented E&P company against unsecured creditors’ attempts to assert fiduciary-breach, aiding and abetting, fraudulent transfer, and equitable subordination claims, totaling over $2 billion. After a 15-day trial, the court denied the creditors’ motions in their entirety. The Financial Times “highly commended” the litigation and bankruptcy strategy for innovative lawyering.
• General Growth Properties Bankruptcy Litigation (S.D.N.Y.). Trial counsel for “bankruptcy-remote” debtors whose bankruptcy filings were challenged as having been made in bad faith. After trial, in a landmark decision on the bad-faith standard, the court rejected those challenges. Also lead litigation counsel representing debtors in connection with confirmation of their plans of reorganization, covering more than $15 billion of secured debt.