Lawsuits

Reuters reports that earlier today, U.S. District Judge Victor Marrero greenlighted a lawsuit seeking to hold Jon Corzine and the upper echelons of MF Global management responsible for the late firm’s difficulties. But before customers’ lawyers got around to high-fiving and slapping each other on the back, Marrero had some words for them too. The short version: You assholes are on thin ice, too. Read more »

Nobody embarrasses Bank of America but Bank of America! Read more »

Back in 2010, a Glencore trader named Andrew Kearns was fired for what management perceived as a drinking problem, which they believed was affecting Kearns’s ability to do his job. Kearns denied that his drinking was a problem, and filed a wrongful termination suit, seeking $1.2 million. Last month, a judge ruled no dice on the $1.2 million; yesterday he rejected the remaining piece of the claim, which sought a mere $20,000. Where did things go wrong for Kearns? Ultimately, it came down to not seeing eye to eye with his superiors on a number of booze-related issues. Among them:

A debate over the line between being a fall down drunk and merely mixing it up with clients.

  • Kearns, who earned about $500,000 a year “regularly consumed excessive amounts of alcohol,” which meant he was late for work or unable to function effectively, Seymour said in the written decision. Kearns argued during the trial that Glencore’s claims weren’t true and that he had been doing his job by socializing with clients. He denied having an alcohol problem and said the company singled him out because of a disagreement with managers.

The proper way to stage an intervention, and the appropriate response to such a thing.

  • Cohen told the judge that when Glencore offered to help Kearns see an addiction expert, he responded by spending an afternoon in the pub.

Read more »

James Dondero is the founder and CEO of Highland Capital Management, a Dallas-based hedge fund. In addition to his duties at the firm, a portion of Dondero’s time is currently being spent on two legal matters. One is his divorce from Becky Dondero, who he’s been battling in court for over two years. The second is his lawsuit against former Highland PM Patrick Daugherty, who the firm described as a “megalomaniacal” manager known for engaging in “abusive tirades” that “dehumanized employees.” Perhaps coincidentally, the suit against Daugherty was filed two weeks after he testified on behalf of Becky Dondero, claiming that over drinks, James told him of a plan to “get his net worth down and pay [Becky] as little as possible.” Daughtery also alleged that Dondero asked him to lie on the stand, and to try remember a time when Daughtery regarded Becky as “a whore.”

Anyway, it wouldn’t be too crazy to think that all of this might be slightly distracting to Dondero and occupy at least a small portion of the attention he might otherwise devote to his day job at Highland. Even Jimmy recognizes that it’s a reasonable assumption to make. But, he assures you, it is an incorrect one. Rather, Dondero can expend unlimited energy on both making investors top dollar AND making sure his estranged spouse gets nada while at the same time making his sworn enemy look ridiculous. The reason we know this is that Highland has released a nearly 1,000-word press release saying as much. Read more »

Andrew Kearns: I was fired on the false claim I have a problem with alcohol. Glencore: We can’t risk having an employee who might come back to the office 10-sheets to the wind, face-plant into his keyboard, and accidentally buy 700.1333333333 million barrels of crude oil. Read more »

Next time you think about pitying yourself for having to pull an all-nighter finishing yet another pitchbook or complaining to your friends that you’ve worked your fingers to the bone all week picking up the slack for your MD or worrying that you might go blind if you stare at the computer screen for one second longer, consider first walking a mile in this woman’s shoes: Read more »

The liquidators want $1 billion for investors and the name of the rating agencies’ dealer for a friend. Read more »