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. 

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Press Releases from this Firm
Recent Content from this Firm
By Stephen Palley
By David Tang, Jun Li, Bill Zhang
By David Bacon
By Mary Mathew, R. Michael Cestaro
By James Mitchell, Michael Connolly
By David Tang, Julian Y. Zou
By David Bacon, Charles Dyke, Charles Kaplan
By Bruce Rich
By Jennifer Persico
By Stephanie Henderson
Font Size: