Rasco Klock's New York Office Managing Partner Blaine Bortnick Wins Case for Client's Motion to Dismiss $1 Billion Lawsuit by New York-Based Hedge Fund
Sep 17, 2020, 08:41 ET
NEW YORK, Sept. 17, 2020 /PRNewswire/ -- Blaine Bortnick, Esq., managing partner of the New York office for Rasco Klock; along with James Halter, Esq., special counsel to the firm; recently won a case on a motion to dismiss in federal court in New York City, New York. Bortnick's client, Jan Gerner of the Czech Republic ― among other defendants ― filed the motion to dismiss a $1 billion lawsuit brought by New York-based hedge fund Kingstown Capital Management LP and its affiliates.
Gerner had previously purchased publicly traded shares in ORCO Property Group, S.A., a Luxembourg-based real estate development company, whose shares traded on European exchanges. ORCO's controlling shareholder is Radovan Vitek, who was also a defendant in the case.
Kingstown alleged that Vitek secretly acquired control over the ORCO board of directors and stripped ORCO of valuable assets to the detriment of minority shareholders like Kingstown. Gerner, among other defendants, were alleged to have acted together with Vitek. Kingstown had previously filed a similar action in Luxembourg, although Gerner is not a defendant in that case.
Although their Luxembourg Action remained pending, the New York-based investors of Kingstown filed this Racketeer Influenced and Corrupt Organizations Act (RICO) action seeking recovery from Vitek and others for essentially the same misconduct litigated in the Luxembourg case.
Along with the other defendants' attorneys, Bortnick and Halter sought dismissal of Kingstown's claims on numerous grounds.
Relying on two of Rasco Klock's many arguments, U.S. District Judge Denise Cote of the Southern District of New York determined that the Luxembourg action should take precedence and accordingly dismissed the New York federal court case. As a result, she did not decide the other arguments in favor of the motion to dismiss.
"This $1 billion case was an incredible win for Blaine and James," said Ramón E. Rasco, firm managing partner, founder, and head of the firm's Business Law Department. "With years of experience in securities and complex commercial litigation matters in federal and state courts, they were able to achieve success for our client in this highly complicated case."
For more information about Bortnick, please visit www.rascoklock.com/team-member/blaine-bortnick/, or contact him at [email protected] or (646) 970-4770. For more information about Halter, please visit www.rascoklock.com/team-member/james-halter/, or contact him at 4 [email protected] or (646) 970-4770.
About Rasco Klock: Rasco Klock, a minority-owned law firm, provides well-reasoned, efficient and practical solutions to the diverse business needs of market leading companies and high net worth individuals who invest or do business in South Florida, New York and the New York City metro area, and the Americas. Nearly half of Rasco Klock's lawyers have been recognized for their legal excellence by independent third parties such as Chambers, Best Lawyers in America, Super Lawyers, and Top Lawyers. Their experience ranges from structuring offshore investment in the U.S. to the day-to-day operations of a going concern, including distribution, licensing, leasing, taxation, government procurement and employment issues.
Its attorneys represent individuals, private and public corporations, and major financial institutions in all aspects of corporate transactions (including mergers, acquisitions, financing, and placements), lending, commercial litigation and arbitration, employment litigation and compensation, bankruptcy and bankruptcy litigation, foreclosures, taxation, trademark monitoring, trademark and trade dress infringement, copyright infringement, false advertising, and infringement of the rights of publicity and internet domain disputes. Led by a joint J.D./Ph.D. in marine biology, they have handled complex environmental cases. They also represent individuals and families domestically and internationally regarding the management, taxation, preservation, and transfers of wealth, as well as the use and administration of trusts and estates.
The New York office is located at 555 Fifth Avenue, 17th Floor; and the Florida office is located at 2555 Ponce de Leon Blvd, Ste 600, Coral Gables. For more information, visit www.rascoklock.com.
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SOURCE Rasco Klock
