Court Upholds Lawsuit Against Adelphia's Lending Institutions

Court Upholds Lawsuit Against Adelphia's Lending Institutions

On June 13, 2007, Judge Robert E. Gerber of the U.S. Bankruptcy Court in Manhattan denied motions to dismiss a lawsuit brought by Kasowitz on behalf of creditors of Adelphia Communications Corporation against 380 lenders involved in the company's collapse.  The lawsuit, which seeks more than $5 billion in damages, alleges, among other things, that the defendant agent banks and investment banks conditioned their delivery of commercial banking services on investment banking opportunities and aided and abetted the fraud and breach of fiduciary duty perpetrated by the Rigases and their collaborators.  Kasowitz partners Michael C. Harwood, Howard W. Schub, and Jonathan E. Minsker are counsel to Adelphia's unsecured creditors.