Gabor Balassa, P.C.

Fiduciary-Breach & Fraud Lawsuits

• Pharmaceutical Merger Litigation (Cook County, Ill.). Defending leading pharma company against state-law fraud claims by hedge fund investors in merger counterparty, seeking to recover hundreds of millions of dollars in losses after merger failure. Obtained summary judgment, for which 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.
• Fiduciary-Breach Litigation (Delaware Chancery). Trial counsel for private-equity firm in two-week bench trial on $500 million claims alleging aiding and abetting fiduciary breach. Case awaiting decision.
• 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 in trial court, affirmed on appeal.
• 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’ arguments and approved resolution favorable to the business.

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 the defendant 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. Ruling for the defendant on all claims.
• Professional Services Class Action (D. Mass.). Defended big-four accounting firm against claims for aiding and abetting fraud in MDL regarding alleged tax advice provided 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. Favorably 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.

Merger Litigation and Other Contract Disputes

• Airline Contract Litigation (Chicago). Trial counsel for major U.S. airline in two-week arbitration involving $100 million contract dispute with regional airline. Awaiting decision.
• 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.
• 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. Representation ongoing.
• Pharmaceutical Merger Litigation (Cook County, Ill.). Obtained summary judgment against all claims by hedge-fund investor plaintiffs. (See above).
• 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.

Class-Action Matters

• Airline Class Action Lawsuits. Represented U.S. air carrier 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.).
• 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. Consensually resolved ahead of class-action hearing.
• Securities Class Action Litigation (N.D. Ohio). Representing diversified minerals business in securities litigation alleging multi-year misrepresentations. Ongoing.
• 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. Plaintiffs settled three weeks 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. 

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.

Financing Litigation

• Airline Loan-Guarantee Litigation (N.Y. Sup. Ct.). Represented leading U.S. air carrier 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 whose stock the guarantor and borrower had pledged as collateral, and defeated the guarantor’s efforts to block the 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.