Federal Court Upholds Kasowitz Client’s Federal and State Fraud Claims
On Friday, March 2, 2012, the U.S. District Court for the Southern District of Ohio upheld claims brought by Kasowitz clients MetLife and Lloyds TSB Bank plc against Credit Suisse in connection with the fraud at National Century Enterprises, Inc. National Century, which is now bankrupt, was the largest provider of healthcare services financing. Credit Suisse served as the underwriter of securities issued by National Century-affiliated entities. In a 115-page decision, the court denied Credit Suisse’s summary judgment motion, determining that that Rule 10b-5, common law fraud, and New Jersey Blue Sky law claims, can proceed to trial, and that MetLife and Lloyds will be entitled to seek punitive damages at trial. After examining the extensive record submitted by the parties, the court concluded that MetLife and Lloyds have “submitted clear and convincing evidence from which a jury could reasonably conclude that Credit Suisse knew or should have known of the material aspects of National Century’s fraud.” Kasowitz New York partner Cindy Caranella Kelly and associate Sarah G. Leivick represent MetLife and Lloyds in this action.