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In a published decision in the Ninth Circuit, TLG won dismissal of an appeal by Bank of New York Mellon, which prevented the Bank from avoiding litigation of claims in a local court against the Bank for breach of fiduciary duty and gross negligence

In a hotly contested case regarding breach of fiduciary duty and gross negligence, where TLG’s clients and its related class lost more than $16 million in a land development project that went bust, TLG successfully stopped the Bank of New York Mellon from avoiding litigating claims against it in a local court that has jurisdiction over the nearby real property related to the case. TLG’s clients are holders of bonds issued in 1996, which had provided the money to develop the project. TLG is pursuing claims against the Bank as an indenture trustee for mismanaging the investment in the property and the property itself, which caused losses of the initial $16 million investment in addition to the ongoing costs and administrative expenses incurred by the Bank. TLG continues to vigorously pursue the bondholders’ claims against the Bank. (Click here to read the decision published by the Ninth Circuit)