United States: Thelen Reid Completes Multimillion Dollar Settlement on Behalf of Chinese Banks
Last Updated: May 12 2006

Thelen Reid & Priest LLP has obtained a multimillion dollar settlement for two of China’s largest state-run banks and another Chinese investment firm in a complex derivative action before the New York State Supreme Court.

New York-based Thelen Reid partner Dan Lowenthal and associate Allison Schrader led the legal team in representing the Construction Bank of China, Agricultural Bank of China and Guangdong International Trust & Investment Corporation in resolving a long-running dispute with New York Guangdong Finance, Inc. (NYGFI), of which the clients were major shareholders.

Over the course of several years, the clients had become concerned that NYGFI’s directors and officers had misappropriated funds and not accounted properly for their substantial investments.

In 1996, the clients and other key parties signed an agreement, which was intended to resolve their outstanding disputes over NYGFI’s investments. However, from the clients’ perspective, matters only got worse. They brought an action in Houston and, in 2002, retained Mr. Lowenthal to bring a second a lawsuit filed with the New York State Supreme Court.

In October 2004, the parties in the Houston case agreed to the terms of a settlement, while the New York action proceeded to discovery. In early 2005, the parties reached an agreement to settle the New York action. It took the parties another year to document and finalize the settlements in both New York and Houston.

Over the past six months, Thelen Reid’s Chinese banking clients have received millions of dollars in settling the New York action, and the case was dismissed. 

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