Credit Suisse Wins Martin Act Litigation on Appeal
June 12, 2018
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.).
Related Practices & Industries
People
- Photo
-
-
J.D., 1995, Yale Law School
-
M.Phil., 1991, University of CambridgeKeasbey Scholar
-
A.B., 1990, Dartmouth CollegePhi Beta Kappa, magna cum laude
- New York
Education
Admitted In
- Photo
-
-
J.D., 2005, Fordham University School of Lawmagna cum laude
-
B.A., 2002, Cornell University
- New York
Education
Admitted In
- Photo
-
-
J.D., 1978, Harvard Law SchoolSears Prize, magna cum laude
-
B.A., 1975, Amherst CollegePhi Beta Kappa, magna cum laude
Education
Related News & Insights
Deals & Cases
April 06, 2026
Versigent’s $1.35 Billion Credit Facilities and $1.6 Billion High‑Yield Senior Notes Offering in Connection with Aptiv PLC’s Spin‑Off of Versigent
Cravath represented the administrative agent, joint lead arrangers and joint bookrunners in connection with $1.35 billion of credit facilities made available to subsidiaries of Versigent Limited, a global leader in the design, development and manufacture of low voltage and high voltage electrical architectures and the holding company for Aptiv PLC’s Electrical Distribution Systems segment, which Aptiv PLC spun off into a separate, independent, publicly traded company. The proceeds were used to partially finance the spin‑off. The credit facilities consisted of a $500 million term loan facility and an $850 million revolving credit facility. The transaction closed on November 26, 2025.
Deals & Cases
February 20, 2026
First Solar’s $1.5 Billion Revolving Credit Facility
Cravath represented First Solar, Inc. in connection with its $1.5 billion revolving credit facility. First Solar is America’s leading photovoltaic solar technology and manufacturing company, and the only US‑headquartered company among the world’s largest solar manufacturers. The transaction closed on February 13, 2026.
Deals & Cases
January 08, 2026
Genmab’s $3.5 Billion of Credit Facilities and Offering of $1.5 Billion Senior Secured Notes and $1 Billion Senior Unsecured Notes in Connection with its Acquisition of Merus
Cravath represented the administrative agent, joint lead arrangers and joint bookrunners in connection with $3.5 billion of credit facilities made available to Genmab, a leading international biotechnology company, and one of its wholly‑owned subsidiaries, Genmab Finance LLC, as part of the financing transactions undertaken in connection with its acquisition of Merus N.V., a leading oncology company developing innovative antibody therapeutics. The credit facilities consisted of a $2 billion term loan “B” facility, a $1 billion term loan “A” facility and a $500 million revolving credit facility. The transaction closed on December 12, 2025.
Deals & Cases
December 24, 2025
Ameren’s $3.2 Billion of Revolving Credit Facilities
Cravath represented the administrative agent, joint lead arranger and joint bookrunner in connection with $3.2 billion of revolving credit facilities made available to Ameren Corporation and Union Electric Company (the “Missouri Borrowers”) and Ameren Corporation and Ameren Illinois Company (the “Illinois Borrowers”). Ameren Corporation is an American power company that engages in the rate‑regulated electric generation, transmission and distribution activities; and rate‑regulated natural gas distribution and transmission businesses. The facilities consisted of a $1.9 billion revolving credit facility (Missouri Borrowers) and $1.3 billion revolving credit facility (Illinois Borrowers). The transaction closed on December 10, 2025.
