Tag Archives: Judge Pauley

Judge Pauley: Moody’s Whistleblower Whose False Claim Act Case Was Dismissed Cannot Share in Related Government FIRREA Settlement

In an opinion last week, Judge Pauley dismissed a second amended False Claims complaint brought by a former Moody’s managing director who claimed that Moody’s false ratings caused various government overpayments  (our coverage of the dismissal of the original complaint is here). The opinion notes that, as a consequence of the dismissal, the plaintiff was … Continue Reading

Judge Pauley Denies Motion to Dismiss Civil Suit Accusing Federal Prosecutors of Fabricating Evidence that Led to Collapse of Hedge Fund

In an opinion today, Judge Pauley largely denied a motion to dismiss a civil case brought by David Ganek, the former head of hedge fund Level Global.  Mr. Ganek accuses U.S. Attorney Preet Bharara and various other government officials of using a fabricated affidavit – which was later contradicted by trial testimony – as the … Continue Reading

Judge Pauley Dismisses False Claims Act Case by Moody’s Whistleblower

Today, Judge Pauley dismissed a False Claims Act case (described as a “sprawling . . . Homeric ‘Catalogue of Ships’ for the 2008 financial crisis”) brought against ratings agency Moody’s by a former managing director.  The amended complaint alleged that Moody’s lack of independence and conflicts of interest led to false credit ratings that caused a … Continue Reading

Second Circuit Affirms Judge Pauley’s Decision Rejecting Class Action Waiver Antitrust Claims Against Credit Card Companies

The Second Circuit yesterday affirmed an April 2014 decision by Judge Pauley (covered here) rejecting claims that American Express, Citi and Discover colluded to add arbitration clauses barring class actions to their standard card agreements.  Judge Pauley had previously ruled that the defendants had acted individually, and not collusively, when adding class action waivers to their arbitration clauses.  … Continue Reading

Judge Pauley Orders Sprint and Regulator to Provide Details on Proposed Settlement

In an order yesterday, Judge Pauley rejected the joint request of the Consumer Financial Protection Bureau and Sprint to move forward on court approval of a $50 million settlement of the regulator’s investigation into the telecom company.  The parties had submitted a proposed one-sentence joint motion for approval of a final judgment and settlement, and … Continue Reading

Judge Pauley Bemoans Needlessly Long and Complicated Pleadings

In an opinion issued today, Judge Pauley lamented the “troubling trend toward prolixity in pleading [that] is infecting court dockets in this district and elsewhere.”  Pointing to the 175-paragraph complaint, “larded with more than 1,400 pages of exhibits” and the 303-page, 1,263-paragraph counterclaim in a “relatively straightforward” case, Judge Pauley admonished both sides for their … Continue Reading

Judge Pauley Criticizes Attorneys Creating Their Own “Caselaw” By Citing Signed Orders They Drafted in Other Cases

In opinion today reducing the attorney’s fees awarded to class counsel in an FLSA case, Judge Pauley criticized the plaintiffs’ attorneys for supporting their fees by citing “caselaw” suggesting that one-third of the recovery is an appropriate amount, when those cases were really signed orders drafted by counsel in other cases:… Continue Reading

Herbalife Case Raises Second Challenge to Constitutionality of SEC ALJs

A complaint filed yesterday is the second SDNY suit (see our post on the first one, here) to argue that SEC ALJ’s are too insulated from accountability to the executive branch, in violation of Article II of the Constitution. The underlying case involves administrative charges against Jordan Peixoto, who allegedly shorted Herbalife stock in advance … Continue Reading

Judge Pauley Grants Motion for Voluntary Dismissal Contingent on Outcome of Appeal

In a short opinion issued today, Judge Pauley granted the motion of a plaintiff to voluntarily dismiss his surviving claims after Judge Pauley had dismissed the plaintiff’s main claims, setting up an immediate appeal to the Second Circuit.  The plaintiff made his motion contingent on the outcome of its forthcoming appeal to the Second Circuit … Continue Reading

Judge Pauley Dissolves Preliminary TRO Previously Granted in Share Conversion Dispute

Judge Pauley yesterday dissolved a temporary restraining order he had issued on June 3 that had previously enjoined an investor from obtaining shares of a shipping company under a complicated subscription agreement.  Under the subscription agreement, the investor (Ironridge) was allowed to demand to be paid in dividends of the shipping company’s (NewLead) stock at … Continue Reading

Judge Pauley Allows Steven Cohen’s Ex-Wife to Pursue Fraud Claims Over Allegedly Hidden Investment Value

In an opinion today, Judge Pauley granted in part and denied in part a motion by SAC Capital’s founder Steven Cohen to dismiss claims that he misled his ex-wife Patricia in connection with their divorce settlement. Patricia Cohen alleged that Steven Cohen falsely told her that a certain real estate investment, referred to as the … Continue Reading

Judge Pauley Dismisses Challenge to NSA Bulk Collection of Phone Data

In an opinion today, Judge Pauley dismissed the ACLU’s challenge to the NSA’s bulk collection of telephone metadata and denied the ACLU’s motion for a preliminary injunction.  The opinion begins: The September 11th terrorist attacks revealed, in the starkest terms, just how dangerous and interconnected the world is. While Americans depended on technology for the … Continue Reading