Michael McNamara, Jack Yoskowitz and Mandy DeRoche won summary judgment for the Royal Bank of Canada and RBC Capital Markets.

November 3, 2014

On November 3, 2014, a New York State judge dismissed a $140 million lawsuit brought by institutional investors seeking to recover alleged investment losses arising from the collapse of the Norshield entities in Canada.

In Balanced Return Fund Ltd. et al v. Royal Bank of Canada, et al, The Supreme Court granted RBC’s summary judgment motion dismissing all of Plaintiffs’ claims, found that RBC and RBCCM had entered an option contract with a Norshield affiliate in 1999 and that Plaintiffs could not tie any alleged investment losses to that contract, finding no misconduct by RBC and RBCCM with respect to the options, and no connection to the Plaintiffs. The Court also found in favor of RBC and RBCCM on their affirmative defense of in pari delicto, finding that Plaintiffs could not recover where their own officers and agents perpetrated the Norshield wrongdoing at issue in the case.

 


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