Jenner & Block

Jenner & Block Announces Subprime Lending Task Force

Jenner & Block has announced the formation of an interdisciplinary task force focusing on legal and regulatory issues arising from the subprime lending crisis.  The task force has been created to provide counseling and litigation services to clients on the complex range of legal issues arising from subprime lending and matters resulting therefrom.  The task force includes many of Jenner & Block’s most experienced partners in complex litigation, insurance coverage, securities, white collar-defense and investigations, bankruptcy and corporate finance.

In announcing the task force, Gregory S. Gallopoulos, the Firm’s Managing Partner, said:  “Our people have been analyzing the issues arising from the subprime lending crisis, and we are already advising clients on these issues.  We feel that we can bring a lot of talent and intellectual firepower to bear on the problems that our clients will be facing.”

The task force includes top partners from the following disciplines:

Complex litigation: Jenner & Block is consistently recognized as one of the top “go-to” firms in the country for tough, high stakes litigation of utmost importance to clients.  The depth and breadth of its litigation experience and capabilities uniquely qualify it for the kinds of problems likely to emerge from the current subprime lending crisis.  The substantial recent experience of several Jenner & Block partners in prosecuting and defending claims associated with securitization of credit card debt is particularly valuable and relevant to clients either defending or prosecuting claims involving subprime lending issues.

Securities:  Jenner & Block’s securities practice includes three top former SEC officials who understand the nuances of the securities laws, which are central to many of the subprime lending cases, and who are experienced in dealing with the SEC and highly respected by the SEC staff. 

White-collar defense and internal investigations:  Two of Jenner & Block’s partners are former United States Attorneys and thirteen Jenner & Block partners have served as Assistant United States Attorneys.  The unparalleled experience of the white-collar/investigations group will be critical in assisting clients evaluate the facts and in dealing with law enforcement and regulators.

Insurance coverage:  Jenner & Block has one of the most sophisticated and experienced policyholder insurance coverage practices in the country.  Its experience in assisting companies and individuals recover pursuant to D & O liability policies, as well as errors and omissions policies, is particularly relevant to the claims being asserted in numerous subprime lending lawsuits alleging violations of the securities laws. 

Plaintiff’s opt-out litigation: Jenner & Block has a team of litigators that has spent more than three decades representing major corporate clients in evaluating whether to opt out of class actions in which they are putative plaintiffs and in prosecuting opt-out suits on their behalf.  Already, many Fortune 500 companies and retirement funds are putative plaintiffs in pending class actions who will need to decide whether and how to pursue their claims individually.

Corporate Finance:  Jenner & Block’s Corporate Finance practice includes the former senior vice-president and general counsel of General Motors Asset Management, a $100 billion investment adviser, and partners who specialize in securitizations.  That experience will be an important asset in analyzing and addressing complex issues relating to sub-prime loan securitizations.

Bankruptcy:  Jenner & Block’s bankruptcy practice has handled some of the most sophisticated and complex bankruptcies in recent years, including those of companies involved in financial derivatives.  Jenner & Block was the liquidating trustee in the Commercial Financial Services bankruptcy. This experience is available to serve clients facing reorganization or dissolution as part of the fallout from the subprime lending crisis.

Professional malpractice:  Jenner & Block’s professional responsibility team is routinely hired by the most prestigious law firms in the country to represent them in connection with professional malpractice claims, which will likely result from the subprime lending situation.

Inquiries should be directed to: Gregory S. Gallopoulos, (312) 923-2754, ggallopoulos@jenner.com.