Judge Denies Dismissal of Billion-Dollar Suit Against The Bank of New York Mellon over LyondellBasell LBO
Kasowitz commenced an action on September 14, 2010, on behalf of a group of noteholders against The Bank of New York Mellon in the Commercial Division of New York County Supreme Court, alleging that BNY is liable for $1 billion of notes that were subordinated to $20 billion of senior debt when BNY, as indenture trustee, wrongfully approved the leveraged buyout of Lyondell Chemical Company by Basell AF, the issuer of the notes. Lyondell filed for bankruptcy thirteen months after the LBO. On February 28, 2012, Justice Shirley Werner Kornreich denied BNY’s motion to dismiss the complaint, allowing the noteholders’ breach of contract and negligence claims to proceed. Kasowitz partners Marc E. Kasowitz and David S. Rosner and special counsel David J. Mark lead the noteholders’ representation.