NY Suit Against Tilton To Go Forward After Failed Appeal

December 30, 2019

Law360 (December 17, 2019, 6:12 PM EST) — A New York state appeals court sent a German bank’s fraud suit against Lynn Tilton and her investment fund toward a likely trial Tuesday after upholding a lower court’s denial of Tilton’s summary judgment motion.

In a short decision from the New York Supreme Court’s Appellate Division, a panel of four justices unanimously confirmed the denial of Tilton’s earlier bid for summary judgment of the $54 million suit brought by Norddeutsche Landesbank Girozentrale, saying questions of fact must be resolved in the case.

***

Nord/LB bought $135 million in notes from two collateralized debt obligation funds, known as the Zohar funds, run by Tilton in the lead-up to the financial crisis of 2008-09, according to court records. But the German bank said it learned when the U.S. Securities and Exchange Commission opened a case against Tilton that it had been misled about how its money was being used, leading it to sell the Zohar notes and take a loss of over $45 million.

The bank’s suit says that it was misled by Tilton about the equity components of the Zohar funds and that it relied on those misrepresentations when purchasing the notes.

***

Nord/LB attorney Michael M. Fay of Berg & Androphy PC said his client was happy about the decision and was looking forward to presenting its case at a trial scheduled for September 2020.

“This is a case for trial, not for summary judgment,” Fay told Law360.

Representatives for Tilton did not immediately respond Tuesday to a request for comment.

Read full article

Law Offices of David Berg Logo

The Law Offices of David Berg tries big cases. Over the years, David Berg, as both plaintiff and defense counsel, has represented Westinghouse, CBS, Samsung, Robert Bass’ Acadia Partners, L.P., Deutsche Bank, Credit Suisse, and other major companies. These cases range from a dispute over nuclear steam generators to a billion dollar patent infringement case to complex securities class actions.

Contact Us

708 Main, 10th floor
Houston, Texas, 77002

(713) 529-5622

general@bafirm.com

Attorney Advertising. Results obtained depend on the facts of each case. Prior results do not guarantee a similar outcome. Copyright 2015-2025, Law Offices of David Berg, All Rights Reserved.