The In Pari Delicto Defense to Bankruptcy and Other Claims Against Directors, Officers, and Third Parties

March 22nd, 2023|Categories: Emerging Issues Webinars, Featured On-Demand, HB Tort Notes, New Webinars, Tort Litigation, Tort Webinars|Tags: , , , , , , , , |

The In Pari Delicto Defense to Bankruptcy and Other Claims Against Directors, Officers, and Third Parties Anticipating or Raising the Defense in Bankruptcy and Other Asset Recovery Litigation Bankruptcy trustees, receivers, creditors, assignees for the benefit of creditors, investors, and other plaintiffs in asset recovery actions often aggressively pursue claims against the management as well as outside professionals and lenders of distressed and insolvent entities, including accountants, auditors, attorneys, banks, and advisers.A significant defense for professionals and banks in such cases is the in pari delicto doctrine. When the plaintiff stands in the shoes of the debtor entity--as do bankruptcy trustees, receivers, assignees for the benefit of creditors, and some others often do--and attempts to recover for the debtor's conduct in which the debtor's officers, directors, or employees were complicit, the defendants often seek to bar recovery arguing that the plaintiff is "of equal fault" with defendants.This defense has been rapidly evolving in the past few years, and its scope varies by jurisdiction. The Madoff and MF Global litigation, among many other high-profile cases, featured this defense prominently. Additionally, insight has emerged from the U.S. Circuit Courts of Appeal and the defense is expected to play a prominent role in the cryptocurrency bankruptcies.Listen as our authoritative panel of trial lawyers discusses recent trends in asset recovery litigation against officers, directors, and outside professionals of distressed companies, as well as banks, [...]

Insurance Coverage for Digital Assets: Mitigating Losses in Cryptocurrency and Non‐Fungible Token Markets by Scott DeVries, Jessica Cohen-Nowak and Adriana Perez of Hunton Andrews Kurth

August 31st, 2022|Categories: Emerging Litigation & Risk, HB Emerging Law Notes, HB Tort Notes, Journal on Emerging Issues in Litigation, New Featured Post for Home Page, Tort Litigation|Tags: , , , , , , , , , , , , , , |

Companies and individuals are riding the ups and downs of cryptocurrency and NFTs—with losses and swings in the billions of dollars—but digital assets are not going away. Abstract: The risk of loss in certain categories may be mitigated by insurance, whether provided by tailored policies and/or under policies designed specifically for digital asset owners. Those with exposure to the digital asset sector should be attuned to the emerging marketplace for such insurance products. While it is early days for NFT-specific coverage, the rise of cryptocurrency has created a substantial marketplace for crypto coverage. Insurers are becoming increasingly able to model and assess risk, so more products are coming to market. That said, digital asset holders need to be able to select coverage that best suits their needs. In this article, the authors discuss the history and status of coverage for digital assets to assist readers in exploring how they might use insurance to mitigate risk in this emerging and rocky sector of global finance. "Over the course of a decade, the marketplace for cryptocurrency has increased from zero to an estimated $250 billion. However, only $6 billion in insurance coverage is currently available. It would be a gross understatement to say that there is a truly remarkable imbalance between market value and insurance capacity." Introduction Crypto [...]

The Impact of Sanctions on Russia on Global Financial Markets with Brad Rustin

March 17th, 2022|Categories: Cyber Risk Litigation, ELP, Emerging Litigation & Risk, HB Emerging Law Notes|Tags: , , , , , , , , , , , , |

The Impact on Global Financial Systems of U.S. Sanctions on Russia with Brad Rustin But what risks do American corporations and financial institutions face in light of these measures? What difficult reverberations will companies feel across the world? What should global businesses and FinTechs be doing right now to avoid, among other things, violating the restrictions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC)? What role will cryptocurrency play in all of this? Also, do institutions whose data are stored in Russia and Ukraine face an additional risk as a parallel (albeit less horrific) battle rages on in cyberspace? Listen to my interview with Brad Rustin, a partner with Nelson Mullins Riley & Scarborough LLP and chair of the firm’s Financial Services Regulatory Practice. Brad is a highly regarded FinTech law and industry expert. This will be apparent when you listen. Brad is also on the Editorial Advisory Board of the Journal on Emerging Issues in Litigation. This is a special rapid-release episode given we feel the insights Brad shares are insights business and FinTech’s -- and their attorneys -- urgently need to hear. This podcast is the audio companion to the Journal on Emerging Issues in Litigation, a collaborative project between HB Litigation Conferences and the Fastcase legal research family, which includes Full Court Press, Law Street Media, and Docket Alarm. The podcast itself [...]

Digital Payments in Class Administration

September 9th, 2021|Categories: HB Risk Notes|Tags: , , , , , , , , , , , , , |

Epiq presents DIGITAL PAYMENTS Best Practices for Efficiency in Class Actions Recorded: Sept. 23, 2020 75 minutes CLE credit: 1+ Registration includes recording, materials, and answers to your questions. TAKE IT NOW! Epiq presents a CLE-eligible webinar Digital Payments Best Practices for Efficiency in Class Actions Recorded Live | Sept. 23, 2020 produced by HB Litigation Conferences Modern life increasingly relies on digital solutions. Nothing has made that more apparent than the novel coronavirus pandemic. In terms of class action settlement payments, the impetus has never been greater to transition to the e-payment realm for security, convenience, cost-reduction, and improved fund disbursement. Class counsel and claims administrators have experimented for years with pre-paid debit cards, automated clearing house (ACH) deposits, and wire transfers, while others have tested judicial appetites for registered-user payment systems like PayPal and Venmo. However, digital payment schemes with multiple options -- the primary of which is direct deposit -- seem to be emerging as the favored solution. Though class action notice is increasingly being digitized, aided by the 2018 amendments to Federal Rule of Civil Procedure, particularly Rule 23(c)(2)(B), which permits notice by electronic means like emails and digital and social media, payment itself has lagged behind. Even with these challenges, electronic payment distribution is now a viable option. Courts are [...]

Cryptocurrency Article and Webinar

September 23rd, 2020|Categories: HB Emerging Law Notes, HB Risk Notes|Tags: , , , , , , , , , , , |

Cryptocurrency: The Good, The Bad, and the Tricky According to a recent Visual Capitalist article, there are now more than 5,000 cryptocurrencies in circulation, fueling an exploding $200 billion industry. Clearly it is a boom time for virtual asset service providers, or VASPs, like cryptocurrency exchanges and wallet providers. Despite its notoriety, mystique still surrounds cryptocurrency, from its use of blockchain technology, to the benefits and weaknesses of trading decentralized money, to national security implications. With crypto’s rise comes global implications. Its use often makes its way into headlines about criminal activity, such as the recent arrest of a 19-year-old and his friends for their alleged roles in a highly publicized Twitter hack. Forensic tools are in a constant state of development. For example, blockchain analysis tools assisted investigators in quickly identifying the young Twitter hackers, according to a post on the CipherTrace blog. Two Sides of the Digital Coin. There are many upsides to cryptocurrency. Transactions are secure without bank oversight. They can be processed at any time, not just during business hours. It has purchase power anywhere. Finally, cryptocurrency may provide greater benefit to developing countries where the local currency may swing due to exchange rate instability. In such countries, and where many citizens may be unbanked, supplanting traditional coinage with cryptocurrency could stabilize finance and open its doors to many. With crypto’s rise comes global implications. Shortcomings [...]

Blockchain Security | Cyber Sector Risk | Seminar and Live Webstream | April 25, 2018 | New York

January 20th, 2018|Categories: HB Risk Notes|Tags: , , , , , , , , , , |

  Join us in New York on April 25, 2018 -- or participate via live webstream* -- for this half-day morning seminar designed to give you the background and practical insights you need to develop your practice, protect your client, or advise your company or law firm on Blockchain Security. (Note: Immediately following this seminar will be a full afternoon seminar on cyber threats to our critical infrastructure.) Program Chairs Michael Nonaka Matthew J. Schlesinger Partners Covington & Burling LLP Laura A. Foggan Partner Crowell & Moring LLP Registration Fee $495 Webstream* Registration Fee $495  Now $195! Join us via the web Receive materials Ask questions * Webcast not available in New York, New Jersey, Pennsylvania, Connecticut. Where The Roosevelt Hotel 45 East 45th Street New York 888-833-3969 Registration Fee $495 Webstream* Join us via the web Receive materials Ask questions Registration Fee $495 * Webcast not available in New York, New Jersey, Pennsylvania, Connecticut. Sponsors         Sales Brownie.Bokelman@LitigationConferences.com Suzanne.Armstrong@LitigationConferences.com Faculty alpha order Adam Firestone EVP Engineering Secure Channels, Inc. and Editor In Chief United States Cybersecurity Magazine Laura Foggan Partner Crowell & Moring Daniel B. Garrie Neutral at JAMS; Managing Partner at Law and Forensics; and CISO at Zeichner Ellman & Krause Charles Heenan Legal Counsel Swiss Re Shawnna Hoffman Co-Leader IBM Global [...]

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