CAMELOT EVENT DRIVEN FUND v. MORGAN STANLEY & CO., LLC

Index No. 654959/21, Appeal No. 1991, Case No. 2023-00983.

2024 NY Slip Op 01866

CAMELOT EVENT DRIVEN FUND ETC., ET AL., Plaintiffs-Respondents-Appellants, v. MORGAN STANLEY & CO., LLC, ET AL., Defendants-Appellants-Respondents, VIACOMCBS, INC., ET AL., Defendants-Respondents, SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION, AMICUS CURIAE, THE AMERICAN BANKERS ASSOCIATION, AMICUS CURIAE, FORMER SEC OFFICIALS AND LAW PROFESSORS, AMICUS CURIAE, FORMER UNITED STATES SECURITIES AND EXCHANGE COMMISSION CHAIR JAY CLAYTON AND FORMER SEC DIRECTOR OF THE DIVISION OF MARKET REGULATION BRANDON BECKER, AMICI CURIAE, FORMER SEC ACTING CHAIR AND COMMISSIONERS AND LAW PROFESSORS, AMICI CURIAE, THE NATIONAL CONFERENCE ON PUBLIC EMPLOYEE RETIREMENT SYSTEMS, AMICUS CURIAE.

Appellate Division of the Supreme Court of New York, First Department.

Decided April 4, 2024.


Attorney(s) appearing for the Case

Paul Weiss, Rifkind, Wharton & Garrison LLP, New York ( Kannon K. Shanmugam of counsel), and Skadden, Arps, Slate, Meagher & Flom LLP, New York ( Scott D. Musoff of counsel), for Morgan Stanley & Co., LLC and Goldman Sachs & Co., LLC, appellants-respondents.

Simpson Thacher & Bartlett LLP, New York ( Jonathan K. Youngwood of counsel), for J.P. Morgan Securities, LLC, Citigroup Global Markets Inc., Siebert Williams Shank & Co., LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., TD Securities (USA) LLC, SG Americas Securities, LLC, CastleOak Securities, L.P., Samuel A. Ramirez & Company, Inc., Academy Securities, Inc., R. Seelaus & Co., LLC, BNY Mellon Capital Markets, LLC, Intesa Sanpaolo S.P.A., and ICBC Standard Bank PLC, appellants-respondents.

Cadwalader, Wickersham & Taft LLP, New York ( Jason M. Halper of counsel), for Mizuho Securities USA LLC, appellant-respondent.

Latham & Watkins LLP, New York ( Jason C. Hegt of counsel), for BNP Paribas Securities Corp., appellant-respondent.

Latham & Watkins LLP, New York ( Richard D. Owens and William O. Reckler of counsel), for Mufg Securities America Inc., appellant-respondent.

Willkie Farr & Gallagher LLP, New York ( Todd G. Cosenza of counsel), for SMBC Nikko Securities America, Inc., appellant-respondent.

Sidley Austin LLP, New York ( Francesca E. Brody of counsel), for Wells Fargo Securities, LLC, appellant-respondent.

Bernstein Litowitz Berger & Grossmann LLP, New York ( John Rizio-Hamilton of counsel), for respondents-appellants.

Sherman & Sterling LLP, New York ( Adam S. Hakki of counsel), for respondents.

O'Melveny & Myers LLP, New York (Meaghan VerGow of counsel), for Securities Industry and Financial Markets Association, amicus curiae.

Weil, Gotshal & Manges LLP, Washington, DC (Mark A. Perry of counsel), for American Bankers Association, amicus curiae.

Orrick, Herrington & Sutcliffe LLP, New York (Darrell S. Cafasso of counsel), for former SEC officials and Law Professors focused on Federal Securities Law, amici curiae.

Wilmer Cutler Pickering Hale and Dorr LLP, New York (Andrew Rhys Davies of counsel), for former United States Securities and Exchange Commission Chair, Jay Clayton and former SEC Director of The Division of Market Regulation, Brandon Becker, amici curiae.

Klausner, Kaufman, Jensen & Levinson, Plantation, Florida (Stuart A. Kaufman of counsel), for former Acting Chair and Commissioners of the SEC and Professors of Law at Columbia Law School and NYU School of Law, amici curiae.

Kessler Topaz Meltzer Check LLP, Rador, PA (Matthew L. Mustokoff of counsel), for The National Conference on Public Employee Retirement Systems, amicus curiae.

Before: Kern, J.P., Singh, González, Pitt-Burke, Rosado, JJ.


Order, Supreme Court, New York County (Andrew Borrok, J.), entered on or about February 7, 2023, which, insofar appealed from, granted the motion of defendants ViacomCBS, Inc. (Viacom), Robert M. Bakish, and Katherine Gill-Charest to dismiss the corrected amended class action complaint pursuant to CPLR 3211 but denied the motions of the Underwriters1 to dismiss said complaint, unanimously modified, on the law, to grant the motions of the Non-Trading...

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