MoCo Litigation Team Notches Another Key Victory for Aggrieved Israeli Pensioners
May 27, 2016 -- We recently reported on our victory on behalf of approximately 200 Israeli investors who collectively invested approximately $10.2 million of their pension savings in a New York building during 2009 and 2010. As we reported, on April 11, 2016, Justice Charles E. Ramos of the New York State Supreme Court, Commercial Division, for New York County, rendered a decision fully vindicating our client's claims for repayment of the $10.2 million in loans, together with accrued interest, which (as of today's date) totals over $16.5 million.
On the heels of that decision, the defendants (direct and indirect co-owners of the building whose ownership rights are subordinate to our client’s loans and, therefore, presently under water) brought on an emergency motion seeking reargument and renewal of the Court's April 11, 2016 decision. We opposed the motion on behalf of the pensioners.
On May 26, 2016, Justice Ramos issued an order and memorandum decision declining to modify or withdraw his April 11 decision in any way, finding the reargument motion to be without any basis. The Court directed that, within five days of entry of an order by the Court (which is expected to occur as early as May 31, 2016), all of the funds currently available for distribution in the litigation (approximately $15.8 million of proceeds from the sale of the building, held in escrow since April 2015) are to be distributed to our client.
Partner and lead counsel Y. David Scharf stated, "We are very pleased with the decision and, equally important, the speed with which it was rendered, only three days after oral argument on the reargument motion. Not only did the Court correctly adhere to its prior determination, but the decision further acknowledges the rights of these pensioners to receive a measure of the justice they have long awaited.”