Case Studies
TransactionsT&K Guides Baseline Oil & Gas Through Pre-Pack Chapter 11 Process
Thompson & Knight obtained confirmation of a pre-packaged ("pre-pack") Chapter 11 bankruptcy plan for Baseline Oil & Gas Corp. ("Baseline"). Baseline is one of the ten fastest pre-packs to be confirmed, with confirmation taking place in 28 days. Baseline filed for Chapter 11 on August 28, 2009 in the U.S. Bankruptcy Court, Southern District of Texas, Houston Division (In re Baseline Oil & Gas Corp., Case No. 09-36291). The confirmation hearing was held on September 25, 2009, and the order of confirmation was signed on the same day. View more information.
"No Violation" Ruling Obtained in ITC Patent Case
Thompson & Knight defended a major semiconductor manufacturer in proceedings before the U.S. International Trade Commission relating to manufacture of semiconductor devices and obtained initial and final determinations of no violation relating to seven patents.
SEC Enforcement and Receivership Cases
Richard B. Roper was appointed Receiver by the U.S. Securities and Exchange Commission ("SEC") in SEC v. Millennium Bank, et al. According to the SEC complaint, this case involves an ongoing $68 million Ponzi scheme involving approximately 375 investors. Additional information on the Millennium Bank Receivership is available at www.tklaw.com/millennium_bank_receivership.cfm.
Thompson & Knight is one of the firms serving as counsel for Ralph S. Janvey, the Receiver, in SEC v. Stanford International Bank Ltd., et al. The Receiver was appointed to seize and collect assets of Stanford in connection with the allegations by the SEC and FBI that Texas billionaire R. Allen Stanford perpetrated an $8 billion fraud on investors worldwide.
Significant Judgment Obtained in Eastern District of Texas Patent Case
Thompson & Knight obtained a trial victory for its client in the U.S. District Court for the Eastern District of Texas. The suit alleged patent infringement by the manufacture, sale, and use of a product monitored by our client, a security system company. During the second day of trial, our attorneys, together with counsel for a fellow defendant, argued that the report of the plaintiffs' infringement expert did not adequately support the plaintiffs' infringement allegations against the monitoring defendants. As a result, the Judge precluded the plaintiffs' expert from testifying about infringement by our client and the other monitoring defendants. When the plaintiffs rested the next day, the Judge granted the monitoring defendants' motion for judgment as a matter of law of non-infringement. View more information.
Jury Verdict Obtained for Transportation Client
Thompson & Knight was retained to defend more than 200 lawsuits filed by residents of Somverville, Texas against our client, a transportation company. The Plaintiffs claim the town of Somerville was contaminated due to exposure of toxic substances from a railroad tie treatment facility formerly operated by our client. In a nine-week trial, we obtained a defense verdict on behalf of our client. The Plaintiff in this case was a former worker at a local tire plant. He claimed his cancer was caused by his work at the plant as well as by exposure to emissions from the plant in the town of Somerville. The Plaintiffs sought approximately $50 million in damages. After less than two hours of deliberations, the jury returned a unanimous defense verdict in favor of our client.
Trial Victory Obtained for Oil and Gas Company
Thompson & Knight obtained a trial victory for an oil and gas company. Following a believed unsuccessful recovery operation, our client, the Plaintiff, elected to plug and abandon a well in Liberty County, Texas and hired the Defendant to perform the plugging operation. The Defendant was informed the well should have no pressure, but when they arrived on location, the well's pressure was recorded at 3,000 psi. The Defendant did not inform our client of the pressure and spent four days attempting to bleed pressure and eventually plugging the well. Our client learned of the pressure encountered when it received the daily reports several months after the well was plugged. Our client sued the Defendant for breach of contract, breach of the implied warranty of good and workmanlike performance, and negligence. The Court found in favor of our client on all of its causes of action.
Fifth Circuit Ruling Obtained in Securities Violation Dispute
Thompson & Knight represented executives of a telecommunications company in a lawsuit alleging that our clients violated securities laws by misrepresenting - and later restating - the company's line count installations in press releases and public filings. The plaintiffs, a private equity firm and its managing partner, alleged an estimated $100 million loss in stock value and earned class-action certification in a lower court ruling. The plaintiffs alleged that class-action status was appropriate because they could demonstrate class-wide reliance via the fraud-on-the-market presumption, which assumes that a stock's market price reflects all publicly released information. The U.S. Court of Appeals for the Fifth Circuit ruled in favor of our client, decertifying the securities class action in a ruling that now requires district courts to demand proof that an accused statement actually moved a stock's market price before plaintiffs can trigger the fraud-on-the-market presumption to secure class certification.
Accounting Arbitrations for Oil and Gas Company
Thompson & Knight was retained to handle post-closing disputes between a major oil and gas company and the Seller. Our attorneys represented the Purchaser in an accounting arbitration regarding the post-closing adjustment to the purchase price. The accounting arbitrator ordered a purchase-price adjustment in favor of our client. We also represented the Purchaser in several arbitration proceedings regarding alleged breaches of covenants, representations, and warranties PSA. In the first proceeding, we obtained a favorable ruling regarding the interpretation of one provision of the post-closing adjustment definition. The other disputes were resolved by a confidential settlement agreement.
Initial Public Offering (IPO) Investment Arbitration
Thompson & Knight prevailed in a week-long arbitration before the American Arbitration Association for a client who was solicited by a venture capital firm to make a substantial investment in a highly-anticipated Initial Public Offering (IPO). The management committee members of the fund squandered our client's investment, along with millions of dollars belonging to other investors. It took six years for the case to get to trial. While the case was pending, the United States Attorney's Office requested our Firm's complete file and used it to indict the management committee members for mail and wire fraud.
Dismissal Obtained in Professional Liability Case
Thompson & Knight obtained a dismissal for a Canadian law firm and a patent agent being sued for professional liability in connection with the filing of a patent application. Our attorneys upheld removal to the United States District Court for the Eastern District of Virginia and convinced the court to dismiss the case based on lack of personal jurisdiction over our clients.
Jury Verdict Secured for Mortgage Industry Clients
Thompson & Knight defended a mortgage company, a subsidiary of the company, and a former employee in a week-long jury trial in Austin, Texas. The Plaintiff was a limited partner and our clients were a limited partner and general partner in a venture that involved the mortgage industry. Our clients gave joint notice to dissolve the lucrative partnership, and the partnership business was wound down and concluded. Thereafter, the Plaintiff filed suit alleging breach of a partnership agreement, breach of the partners' fiduciary duties, and asserted fraud allegations and tortious interference against our clients. The jury awarded a defense verdict as to all claims asserted.
Judgment Obtained for Real Estate Brokerage Firm and Broker
Thompson & Knight represented a real estate brokerage firm and broker against allegations of negligence, fraud, and violations of the Deceptive Trade Practices Consumer Protection Act by making representations and failing to disclose extensive construction defects to the plaintiffs' property. After a three-day bench trial, the Court granted judgment in favor of our clients and dismissed all of the plaintiffs' claims.