Altisource Asset Management Corp. Wins Precedent-Setting Equity Investment Appeal in NY

1 minute read | June.14.2023

  • The New York Supreme Court’s First Department Appellate Division rejected an effort by hedge fund Luxor to stretch the boundaries of shareholder rights, siding with our client Altisource.
  • The court held that the agreement unambiguously barred shareholders from redeeming their shares when a company lacks sufficient funds to pay the full redemption amount – in this case, $250 million.
  • The court agreed with an Orrick team’s arguments under settled New York contract law principles and the statutory framework governing preferred stock investments. The decision reversed a lower court decision that would have required these issues to be determined at trial, and instead directed judgment in our client’s favor.

The Orrick team was led by partner Darrell Cafasso, who argued the case, and included partner Danny Rubens and associates Katherine Munyan and Emily Villano.

Law360 covered the decision in this story.