Hughes Hubbard recently commenced a breach of contract and declaratory judgment action on behalf of client Société Générale against Financial Guaranty Insurance Company and FGIC Credit Products LLC in U.S. District Court for the Southern District of New York.
The complaint alleges that FGIC, “in dire financial straits,” breached its credit default swap contract with Société Générale by improperly and in bad faith terminating approximately 22 separate transactions and related insurance policies with a face value exceeding $2 billion. The move, the complaint alleges, was a way for FGIC to “remove over $2 billion worth of liabilities from its balance sheet and alter the course of its ongoing restructuring.”
Michael Luskin and Robb Patryk are leading the litigation team, which includes Bill Hennessey, Charlie Huberty, Gabrielle Genauer and Seth Schulman-Marcus. Richard Stern has been handling the FGIC workout, and he and Amy Dulin assisted the litigators on issues related to the swap contracts affected by the improper termination.