Private Fund Disputes



We use our vast and deep understanding of the private funds industry to solve disputes unique to alternative investments and guide our clients away from developing disputes.

Our approach

The private fund industry is confronting greater litigation risk than ever.

In the mid-1990s, long before the credit crisis and the subsequent turmoil, we developed a cutting-edge practice in this area, representing sponsors of private investment funds, including tax credit partnerships and venture capital funds.

Today, we use our experience and judgment to solve complex disputes affecting a variety of private investment funds, including hedge, private equity and venture funds, collateralized debt obligations (CDO), asset-backed securities (ABS) and real estate investment partnerships.

We understand the duties and obligations of funds and managers, so we can assist with any challenge, from day-to-day obligations to control contests, winding down and liquidation.

Our team is among the industry’s finest in handling fraud-based redemption and clawback disputes and related insolvency proceedings. We provide advice and representation in criminal and civil investigations ranging from insider trading to record retention compliance.

We represent clients in both U.S. domestic funds and in funds domiciled offshore in the Cayman Islands, British Virgin Islands (B.V.I.) and in Europe.

We work with

  • Hedge Funds
  • Hedge Fund Managers
  • Private Equity Funds
  • Private Equity Funds Managers
  • Investors
  • Liquidators
  • Insolvent Estates

Representative Experience

  • Defended nine pairs of Cayman Island and Delaware-based issuer/co-issuer defendants in a $100 million securities fraud case involving the sale of collateralized debt obligations (CDOs), resulting in a complete dismissal of the case.
  • Representing Boston Capital in numerous limited partnership disputes related to syndicated tax credit funds.
  • Representing Cayman Island and Delaware-based special purpose vehicles (SPVs) in putative securities class action alleging fraud under both New York law and Section 10(b) of the Securities Exchange Act of 1934. The claims arise out of losses that the lead plaintiff investment fund alleges were suffered in connection with two synthetic CDO transactions that offered investors exposure to the performance of subprime residential mortgage-backed securities through certain credit default swap.

  • Representing Credit Suisse entities and executives as co-counsel in actions brought by the Massachusetts Mutual Life Insurance Company and the Federal Home Loan Bank of Boston, who are seeking billions of dollars in rescission against issuers, sponsors, and underwriters of residential mortgage-backed securities.

  • Representing John Hancock in a suit brought by an LLC over lost assets from its multi-million dollar investment through variable life insurance policies in Tremont Group Holdings Inc. fund.
  • Representing Mount Capital Fund Limited, a British Virgin Island-based hedge fund, in a $50 million preference and clawback action brought by the Madoff trustee, in one of the first sales of Madoff-tied SIPA claims to a third party, and with litigation advice related to recovery of assets lost in Madoff-related funds.

  • Representing ThreeAM SPC a Cayman Island-based hedge fund of funds in valuation/liquidation disputes with various PIPE funds.

Kochs and other Madoff investors are winners in fight over profits held abroad

The New York Times | November 22, 2016

Boston partner and co-leader of the commercial litigation practice Jon Sablone is quoted in this article about a recent ruling in federal bankruptcy court in favor of Madoff fund investors.

Cybersecurity Best Practices for Senior Bank Management

Bloomberg BNA Banking Report | March 21, 2016

Chicago partner Susan Feibus authored this column about important considerations for financial institutions to take in terms of policies and procedures that address the cyber threat environment and resilience to cyber attacks.

Private Fund Regulation in 2015—SEC Levels Up

Law360 | December 18, 2015

Boston partner and deputy chairman of the Private Investment Fund Disputes team Stephen LaRose and Boston associate Kathleen Ceglarski Burns co-authored this article. The piece discusses how the U.S. Securities and Exchange Commission’s focus on private fund advisers has shifted from learning and information gathering to examination and enforcement activity.

Contacts

Jonathan Sablone

Partner
Practice Group Co-Leader, Commercial Litigation
Chair, eDiscovery & Digital Evidence
Chair, Private Fund Disputes

jsablone@nixonpeabody.com

Phone: 617-345-1342

  • Ranked as National Tier One in U.S. News/Best Lawyers “Best Law Firms” in Real Estate Law and Commercial Litigation. Received metropolitan honors in Real Estate Law and Commercial Litigation in Boston and Rochester and Construction Litigation in San Francisco.
  • BTI Litigation Outlook 2013
    • “Most Feared Law Firm”—Honor Roll
    • Strong Performance—
      Commercial Litigation, IP Litigation, Product Liability Litigation
  • Chambers USA/Global
  • Legal 500
  • Benchmark: Litigation/Appellate
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