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HSBC BANK USA v. BOND, SCHOENECK & KING, PLLC

16 Misc.3d 813 (2007)

838 N.Y.S.2d 419

HSBC BANK USA et al., Plaintiffs, v. BOND, SCHOENECK & KING, PLLC, et al., Defendants.

Supreme Court, Erie County.

June 4, 2007.

Attorney(s) appearing for the Case

Simpson Thacher & Bartlett LLP (Thomas C. Rice, Paul C. Gluckow and Matthew A. Katz of counsel), for Bond, Schoeneck & King, PLLC, defendant.

Wolford & Leclair LLP (Michael R. Wolford and Christopher D. Lindquist of counsel), for Coughlin & Gerhart LLP, defendant.

Phillips Lytle LLP (Gary F. Kotaska of counsel), for HSBC Bank USA, plaintiff.

Harter Secrest & Emery LLP (Kenneth W. Africano of counsel), for Janet S. Bordages and others, plaintiffs.

OPINION OF THE COURT

JOHN M. CURRAN, J.

This matter arises out of the settlement of a federal court action brought by employee beneficiaries of the employee stock option plan (ESOP) of the now-defunct Azon Corporation. Three years before Azon filed for bankruptcy protection, the controlling shareholders, individual plaintiffs herein, sold their stock to the ESOP for $25 million, financed through a loan procured by Azon. Defendant Bond, Schoeneck& King...

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