Source: https://www.diamondmccarthy.com/about_us/representative-cases-clients
Timestamp: 2019-04-20 08:53:24+00:00

Document:
Currently lead trial counsel for the post-confirmation Syntax/Brillian Corporation Liquidating Trust arising out of this former publicly traded HDTV television manufacturer's losses in the hundreds of millions of dollars. Cross-border international claims are being investigated and pursued against a multitude of financial institutions, corporations and professional firms in the federal courts of Los Angeles, Delaware and Arizona as well as Taiwan and China.
Served as lead trial counsel to Mercury Air Group, a publicly traded airline transportation company, in the state and federal court courts of Los Angeles, California in connection with the defense of securities, unfair competition, antitrust, breach of contract and other claims arising out of a failed corporate acquisition.
Currently lead trial counsel for the post-confirmation USACM Liquidating Trust arising out of the former USA Capital based sub-prime mortgage lending entities in connection with the Trust's investigation and pursuit of litigation claims involving hundreds of millions of dollars in damages in the federal courts of Las Vegas, Nevada. These claims and recoveries involve major financial institutions, corporations, accounting and legal professional organizations and other third parties.
Currently lead trial counsel for the Creditors Committee in the Appalachian Fuels LLC and related company bankruptcies in the Eastern District of Kentucky in connection with the investigation and pursuit of claims arising from this coal mining company's losses of more than one hundred million dollars. Claims involve a multitude of companies, former officers and directors, insurers and professional firms.
Currently lead special trial counsel for the Chief Restructuring Officer of Equipment Acquisition Resources, a debtor in bankruptcy proceedings in Chicago, Illinois involving hundreds of millions of dollars in losses arising out of an alleged Ponzi scheme.
Over the past year, Diamond McCarthy has represented Perry Uniontown Ventures I, LLC, the owner of one of the largest landfills in the United States, in a Chapter 11 proceeding in the Southern District of Alabama.
Currently oversee all litigation on behalf of the Chapter 11 Trustee to Dreier, LLP in connection with its complex New York litigation proceedings arising out of Mark Dreier’s Ponzi scheme and related matters.
Currently lead trial counsel for the Cayman Island court-appointed liquidators for two former Cayman Island based companies related to the former Italian international food and dairy conglomerate, Parmalat, in connection with their multi-billion dollar claims in the global MDL proceedings in the United States District Court for the Southern District of New York (along with related proceedings in the courts of Grand Cayman and Milan and Parma, Italy. One of the cases is currently on appeal to the U.S. Court of Appeals for the Second Circuit following trial proceedings. Certain international claims have been settled.
Currently lead trial counsel for the chapter 7 bankruptcy trustee for Endoscopy Centers of Nevada in connection with the prosecution and defense of various claims arising out of this high media profile bankruptcy and its related litigation proceedings in which hundreds of lawsuits are pending involving the hepatitis C infections of patients treated by the Debtor. These matters involve hundreds of millions of dollars in claims pending in the courts of Las Vegas, Nevada.
Served as lead trial counsel for the pre- and post-confirmation trustee of LJM2 Co-Investment, LP, the former Enron affiliate led by Andrew Fastow that resulted in Enron's demise, in connection with the investigation and pursuit of millions of dollars in claims arising out of Enron and LJM2's bankruptcy proceedings in Dallas and New York. Substantial recoveries were achieved.
Served as lead trial counsel for more than 1,000 Latin American investors in connection with claims for accounting and legal professional liability, officer and director liability and financial institution tort liability of more than $350 million in damages arising out of the InverWorld, Inc. bankruptcies in the courts of San Antonio, Texas, the Grand Cayman Islands and the United Kingdom. Substantial recoveries were achieved.
Served as lead trial counsel to the post-confirmation trustee of Agribiotech, Inc., the former Las Vegas, Nevada publicly traded forage and seed manufacturing company (largest in North America at the time) in connection with officer and director breach of fiduciary duty claims, software implementation breach of contract claims, accounting and other professional negligence and fraudulent transfer claims in the United States District and Bankruptcy Courts in Las Vegas involving more than $80 million in damages.
Served as lead special trial counsel to the post-confirmation liquidation trust for Southeast Bancshares. At the time Southeast Bancshares was the sixth largest bankruptcy in United States history. Successful claims were prosecuted in the federal courts of Miami, Florida resulting in recoveries against former officers and directors, professional accounting and law firms, and various financial institutions. This is the most successful chapter 7 estate in terms of recoveries and payouts in U.S. history.
Served as lead trial counsel to Tricontinental Industries, a publicly traded company based in Vancouver, Canada in connection with securities fraud, negligent misrepresentation and other claims arising out of Chicago based Anicom, Inc.'s demise in the federal courts of Chicago, Illinois.
Represented the Chapter 7 Trustee for Precept Business Services, Inc. in bankruptcy litigation (N.D.Tex.) against the officers, directors and professionals of the Precept Debtors. In that litigation, the team prosecuted not only the usual estate and generalized creditor claims, but also pressed secured lender claims that had been assigned to the estate.
Acted as Special Counsel to the Creditors Committee in the Friede Goldman Halter bankruptcy (S.D.Miss.), and to its successor liquidating trust. In that role, the firm was charged with investigating and, where appropriate, prosecuting litigation against the officers, directors and professionals who once served the Friede Goldman companies. Major actions brought against certain former officers, directors, and professionals were successfully concluded.
Diamond McCarthy successfully prosecuted, on behalf of Jewel Recovery, L.P., the Zale Jewelers post-confirmation litigation entity, those causes of action held by one of the world's largest jewelry companies and its creditors. This engagement involved the management of hundreds of suits in bankruptcy and other courts in the U.S. and Canada, and the resolution of complex questions of liability and damages relating to company officers and directors, the professionals who served them, and their insurers.
Counsel to minority shareholder against the majority shareholder and nominally against the closely held corporation for minority shareholder oppression, breach of contract, derivative claims against the majority shareholder for misuse of corporate assets and several other related claims. The minority shareholder was successful on all claims presented to the jury. The jury found oppression and that the majority shareholder had acted against the interests of the company. Final judgment was recently entered -- requiring the company to pay an $85 million dividend, back-pay to the minority shareholder, reimbursement to the corporation as well as attorneys fees on the contract claims and the derivative claims brought against the majority shareholder.
Counsel to the Official Committee of Unsecured Creditors of the Millennium Multiple Employer Welfare Benefit Plan, a purported section 419A(f)(6) plan with approximately $112 million in assets that the IRS has declared to be an abusive tax shelter.
In the Livent litigation and bankruptcy (S.D.N.Y.), Diamond McCarthy lawyers brought: (1) a securities fraud class action on behalf of institutional and individual noteholders of the notes of Livent, Inc.; and (2) a parallel and reinforcing equitable subordination action against Livent's lead lender, on behalf of the Creditors Committee. A comprehensive, multi-case settlement with that lender was successfully concluded to the great benefit of the estate and its creditors.
Defense counsel to second largest gas producer in the state of Michigan in a proposed class action involving the propriety of royalty payments for gas and natural gas liquids production. Plaintiffs' claims focus on affiliate sales, the pricing of such sales, and the deductions taken therefrom in the calculation of royalty payments. After first reversing a default judgment taken prior against the company prior to involvement of attorneys, the first also reversed the trial court's certification of a royalty owner class. Upon securing the reversal, plaintiffs' counsel agreed to dismiss the case with prejudice.
Currently lead counsel in a lawsuit (D. Nev.) against multinational mining companies alleged to have caused severe injuries to the environment and economy of the Philippine island province of Marinduque, and to its people.
Representation of a large multinational oil and gas pipeline company in a dispute involving the threat of disconnection of gas pipelines in the Gulf of Mexico against another pipeline company and some of the largest oil and gas producers in the world.
Served as lead counsel in a lawsuit alleging that a major international oil company made illegal payments to certain Asian governmental officials in order to preclude a rival from securing lucrative oil and gas contracts in that nation's offshore areas. The case has involved proceedings in the Texas and D.C. federal district courts, the Fifth Circuit and the United States Supreme Court.
Defense counsel to large oil producing company in an action brought under the False Claims Act, 31 U.S.C. § 3729, et seq. in the United States District Court for the Eastern District of Texas. The case was originally filed by private relators on behalf of the United States under the qui tam provisions of the False Claims Act. The Plaintiffs alleged that the defendant oil companies had engaged in numerous schemes, and had filed hundreds of thousands of false reports with the Department of Interior, with the intent to underpay royalties on crude oil extracted from federal and Indian lands.
Defense counsel to large independent natural gas producer in cases brought by landowners in/near Fort Worth, Texas. Plaintiffs alleged that the industry players in the area (including our client) conspired against landowners/prospective royalty owners to drive down the price of bonus payments and royalties. Defendants (producers, brokers and related industry players) moved to dismiss the case based standing/lack of subject matter jurisdiction grounds. The judge recently granted defendants motion and dismissed the antitrust claims.
Representation of a natural gas producer in connection with the terms of a gas sales agreement. The issues included the construction of contractual language, whether terms were enforceable and whether there was to be an equity kicker/upside, and the effect of the juries answer to several questions. The case (which was litigated in Texas although the production was in Michigan) was ultimately settled after the producer rescinded the contract based upon the jury findings and cross appeals were filed.
Currently lead trial counsel for various New York and Boston based hedge funds in connection with credit default derivative swap (CDO) contract litigation claims arising out of the American Home Mortgage Company bankruptcy proceedings against one of the largest global U.S. financial institutions pending in Delaware federal court.
Served as lead trial counsel to global Dutch bank, Rabobank Netherlands, in connection with parallel international proceedings involving more than $100 million in claims against another international European bank, former officers and directors of an international dry fruits and nuts processor as well as cross-border accounting and audit malpractice litigation against one of the big four accounting firms in Contra Costa County, California, Fresno, California and London, England.
Advised investigative reporters for television station on using hidden cameras to report on human trafficking.
Advised various media outlets on using medical information relating to well-known Las Vegas entertainer in reports on life-threatening incident which occurred on the Las Vegas Strip.
Represented the Nevada Resort Association in a case involving a well-known media campaign by a Las Vegas resort hotel and casino.
Won a motion for summary judgment and complete defense for a major public figure in a defamation case filed by Jennifer Flowers in Las Vegas.
Advised various political candidates and elected officials on campaigns and use of political advertisements during election.
Advised television station on sting operation which used hidden cameras in coordination with state investigation.
Representation of a group of major outdoor advertising companies in drafting local sign ordinance.
The New York office defended a significant number of the partners of Van der Moolen Specialists, then the second largest specialist firm trading on the floor of the New York Stock Exchange, from 2003 through 2009 in connection with alleged violations of the federal securities laws and the Rules of the Stock Exchange. Our representation involved the administrative and criminal investigations and proceedings against traders at the five major specialist firms and included total vindication of several of our clients. We negotiated settlements after extensive discovery proceedings for several other clients with the Stock Exchange and the SEC. We represented three partners in an extremely complex, 42 day multi-respondent administrative trial before the SEC Chief Administrative Law Judge, which resulted in no fines assessed against our clients. On behalf of several partners, we negotiated with the United States Attorney for the Southern District not to indict them for securities fraud. Three of our clients were indicted. After two separate jury trials, in which we assisted criminal counsel, our clients were found not guilty and the charges against the third were dismissed.
(Banking and Warranty) Represented former majority owners of a privately Dallas company that sold bundled products in warranty packages. Diamond McCarthy defended against filed by NexBank SSB in state district court in Dallas. In the lawsuit, NexBank sought to recover more than $16 million following a loan default, and Diamond McCarthy obtained a dismissal of all claims via summary judgment. After the trial court granted summary judgment, the case settled on confidential terms before trial. NexBank, SSB v. Thomas and Dean, Cause No. DC-10-09631.
(Medical) Represented majority owner of medical device distributor in litigation filed in Dallas state court by the company’s minority owner, who claimed that the majority owner had violated his fiduciary duties. Diamond McCarthy successfully negotiated a confidential, multi-party settlement of case, which secured dismissal of the lawsuit and resolved all claims. John Perry, et al. v. Scott E. Conard, et al., Cause No. CC-16-01117-B.
(Entertainment/Travel) Represented majority owners in negotiating the purchase of minority interest in a privately held company in the entertainment and travel industry. In negotiating the buyout of the minority owner’s interest, Diamond McCarthy structured and created a complex, multi-year buyout arrangement that included novel collateral arrangements.
(Real Estate) Represented majority shareholder who contended in lawsuit filed in state court in Fort Worth that he had been improperly deprived of the value of his ownership interest in real estate assets by his co-owners. Diamond McCarthy filed this lawsuit and secured a confidential settlement for the majority owner after first succeeding on appeal before the Fort Worth Court of Appeals to obtain a reversal of the trial court’s summary judgment order dismissing the case. Bakke v. Harvison, et al., Cause No. 352-244033-10.
(Hotels) Diamond McCarthy served as co-counsel for majority shareholder in defense of claims by minority shareholder relating to redemption of minority owner’s stock. The firm assisted with summary judgment briefing and also assisted in negotiating a confidential settlement of minority owner’s claims. Robert Garza, and Robert Garza ex rel Enseo, Inc. v. Enseo, Inc., Vanessa Ogle and William Fang, Cause No. CC-11-02951-B.
(Agriculture) Represented majority owner of fertilizer company in defense of claims by the minority owners who filed suit in the Texas Panhandle (Dallam Country) to block the majority owner from expanding the company’s current board of directors. In the proceedings conducted by the trial court, Diamond McCarthy secured a denial of all injunctive relief that was requested by the minority owners, who then dismissed their case. Danny Poole, et al. v. Karen Poole, et al., Cause No. 11850.
(Home Furnishings) Represented majority owner of family-owned home furnishing company in negotiating the resolution of claims by the minority owner, who was demanding a buyout. Through constructive business dialogue, Diamond McCarthy secured a confidential settlement and the purchase/redemption of the minority-held interest, which avoided litigation.
(Aircraft) Represented the majority owner of specialized equipment repair company to resolve claims by minority owners. This amicable resolution involved a restructuring the company’s board of directors, the implementation of new business processes and addressing the minority owner claims without resort to litigation.
The firm is often retained by family law counsel to assist in marital cases. In these family law matters, Diamond McCarthy’s role is to assist in optimizing the financial outcome for the parties in the divorce settlement. Due to the confidential nature of marital cases, which often involve children, the following matter descriptions do not identify the firm’s clients and refer instead to the nature of the business assets that were involved in the marital estate.
(Real Estate) The couple in this divorce owned several large tracts of raw land, and disagreed about the potential for substantial increases in the real estate’s value based on anticipated future zoning changes. Diamond McCarthy was able to resolve these business conflicts by negotiating the terms of a structured divorce settlement providing for payments to be tied to the future sale of the property under differing parameters for the sale.
(Oil & Gas) The principal asset in this divorce was a minority interest in a private company that produced raw materials for the oil and gas industry. The illiquid nature of this minority interest required the couple’s divorce settlement to provide for a long-term structured payout. Diamond McCarthy therefore negotiated a payment structure that included both a floor and a ceiling in terms of the ultimate amount to be paid under the terms of the divorce settlement.
(Private Company Investments) In this divorce, the couple had made substantial, but minority, investments in a number of private companies. To conclude the settlement, Diamond McCarthy negotiated a trust agreement that transferred all of the private company investments into a newly formed trust with the husband serving as Trustee and the wife as one of two trust beneficiaries. The trust agreement protected the former wife’s ownership interest in the investments held in the trust while allowing both of the parties to benefit from the anticipated appreciation in the value of the assets held in trust.
(Real Estate) The divorcing couple owned interests in real estate development projects, and they entered into a marital agreement to divide their interests in the event of a divorce. Under the terms of the marital agreement, the husband continued to retain full control over most of the assets that were formerly in the marital estate, which created substantial conflicts. Diamond McCarthy helped negotiate the terms of a new, revised settlement agreement that addressed the business concerns of each party in the divorce, and which provided for a long-term, structured buyout of the wife’s interest in the community estate.
(VA Hospitals) This marital estate included multiple investments in privately held companies that had entered into long-term lease contracts with government operated VA hospitals. The successful negotiation of the divorce settlement in this matter resulted in a division of assets that required analysis of this asset class, including various tax, real estate and financial issues.
(Long-Term Alimony) In this divorce, the husband agreed to provide the wife with alimony payments for the rest of her life, but this long-term payment stream needed to be protected by some form of collateral. Diamond McCarthy provided family law counsel with a number of alternative methods for collateralizing the alimony obligation to permit the couple to conclude their divorce settlement on mutually acceptable terms.
(Government Contracting) In this divorce, the wife owned the majority stake in a consulting service business that did extensive contracting with the federal government. Diamond McCarthy negotiated a transfer of the wife’s business majority ownership interest to the husband in order to conclude the divorce settlement in a manner that optimized the value to both parties.
Debtors' counsel for Consolidated Equipment Companies, Inc., Con-Equip, Inc. and Owsley & Sons, Inc. as debtors in possession, representing the largest commercial crane retailers in the southeastern United States, with over $100 million in senior secured debt in their Chapter 11 bankruptcy cases. Important issues included prepetition planning, debtor in possession financing, cash collateral, 363 asset sales and plan formulation and confirmation.
Debtors' counsel for Consolidated Roofing and Waterproofing, Inc. and eleven related companies as debtors in possession in Chapter 11 bankruptcy cases and representing this nation-wide network of commercial roofing companies from pre-bankruptcy planning through plan confirmation. Diamond McCarthy handled issues related to construction project bonding and surety issues, enforcing the automatic stay, secured creditor negotiations, and 363 asset sales.
Debtor's counsel for AFG Pacific Properties, Inc. as debtor in possession in Chapter 11 bankruptcy case and representing this international real estate holding company in the sale of over $30 million in undeveloped real estate through a Chapter 11 plan of reorganization.
Counsel for the Official Committee of Unsecured Creditors of PJJ Management Corporation and its affiliates and general bankruptcy counsel for the unsecured creditors committee in the Chapter 11 cases of these specialty engineering and manufacturing debtors. Issues included contesting cash collateral and plan confirmation, investigating claims against the debtors' officer and directors and certain secured creditors and negotiating and obtaining improved treatment for unsecured creditors in the debtors' Chapter 11 plan of reorganization.
Counsel for the Official Committee of Unsecured Creditors of Logix Communications Corporation, representing the unsecured creditors committee in the Chapter 11 bankruptcy of this telecommunications competitive local exchange carrier in Texas, Louisiana, Oklahoma and Florida. Case issues included investigating lien avoidance and debt recharacterization claims, making a Louisiana World demand to allow the unsecured creditors committee to bring claims on behalf of the debtor's estate, negotiating the recovery for, and protecting the interests of unsecured creditors.
With respect to foreign institutional investors, we have represented Oxford Properties Group, an affiliate of the Ontario Municipal Employees Retirement System, and the Canada Pension Plan Investment Board in connection with their investments in real estate funds and joint ventures with respect to the acquisition and development of properties in the United States.

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