Four Decades for Justice
On June 12, 2018, the New York State Court of Appeals ruled in favor of Cravath client Credit Suisse in dismissing the Martin Act claim filed by the New York Attorney General relating to all residential mortgage‑backed securities (“RMBS”) sponsored by Credit Suisse in 2006 and 2007—about $40 billion worth of securities in total.
In December 2014, the New York Supreme Court denied Credit Suisse’s motion to dismiss the complaint for failure to timely commence suit under a three‑year statute of limitations period, finding that a six‑year limitations period applied. Credit Suisse filed an interlocutory appeal of the decision to the New York Appellate Division, First Department. The First Department affirmed the lower court in a split decision (3-2) in December 2016, and granted Credit Suisse leave to appeal to the New York Court of Appeals.
The state’s highest court agreed with Credit Suisse that the Martin Act (an investor protection statute which the NYAG argues is essentially a strict liability statute) is governed by a three‑year limitation period, not the six‑year period the NYAG has always argued should apply, and therefore dismissed the Martin Act claim with prejudice. This is significant not only for the Credit Suisse case, but for future NYAG proceedings in the investment industry generally.
The Cravath team included partners Richard W. Clary, who argued the appeal before the New York State Court of Appeals in March 2018, Michael T. Reynolds and Lauren A. Moskowitz, and associates Alexander V. Maugeri and Winnifred A. Lewis. The case is People of the State of New York v. Credit Suisse Securities (USA) LLC et al., No. 451802/2012 (N.Y. Sup.).
Deals & Cases
November 27, 2023
Cravath represented the administrative agent, joint lead arranger and joint bookrunner in connection with $14 billion of credit facilities made available to RTX Corporation, an aerospace and defense company that provides systems and services for commercial, military, and government customers worldwide. The facilities consisted of a $10 billion bridge credit facility and a $4 billion term loan facility. The transactions closed on October 24, 2023 and November 7, 2023.
Deals & Cases
October 06, 2023
Cravath represented the administrative agent, joint lead arranger and joint bookrunner in connection with $2.4 billion of credit facilities made available to Cencora, Inc., a leading global pharmaceutical solutions organization committed to improving patient access to products and enhance patient care. The facilities consisted of a $355 million tranche one revolving credit facility and a $2.045 billion tranche two revolving credit facility. The transaction closed on October 6, 2023.
Deals & Cases
August 30, 2023
Cravath represented the administrative agent, joint lead arranger and joint bookrunner in connection with an $800 million revolving credit facility made available to Albany International Corp. and certain of its subsidiaries. Albany International Corp. is a leading provider in the textile and materials processing business. The transaction closed on August 16, 2023.
Deals & Cases
August 30, 2023
Cravath represented the lead arrangers in connection with senior facilities to finance the pending acquisition of Palex Medical by funds advised by the private equity firms Apax Partners LLP and Fremman Capital. Palex Medical is a leading provider of high value‑added medical technology equipment and solutions in Southern Europe.
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