Practice Areas

The hallmark of our practice is the depth of our lawyers' litigation experience and the excellence of our written work, which we view as the critical components to achieving excellent results for our clients – whether plaintiffs or defendants. We have extensive courtroom experience: Our lawyers have tried scores of cases, both civil and criminal, in state and federal courts, and participated in innumerable hearings, arbitrations, and mediations. The firm's lawyers are also very experienced at briefing and arguing appeals in civil and criminal cases, in government and private practice, and in federal and state courts.

White Collar Criminal Defense

The attorneys at Spears & Imes have defended individuals in all phases of federal and state white collar criminal proceedings, involving a vast array of charges and potential charges based on dozens of different federal and state statutes. In addition, partners Linda Imes and David Spears both served as Assistant United States Attorneys in the Criminal Division of the United States Attorney's Office for the Southern District of New York, where they were immersed for several years in federal criminal practice.

Spears & Imes has been recognized as a "Leading Firm" among Specialist Firms with expertise in White-Collar Crime & Government Investigations by Chambers & Partners in its highly respected annual guide to leading law firms and lawyers, Chambers USA: America's Leading Lawyers for Business (2011). Chambers describes the firm as "highly regarded" and "widely recommended for its work in white-collar criminal defense and government investigations." According to Chambers, the firm "receives praise for its deep trial experience." A source consulted by Chambers calls Spears & Imes "[a]n excellent firm doing fantastic work." Additionally, Chambers has recognized both Mr. Spears and Ms. Imes as "Leading Individuals" in White-Collar Crime & Government Investigations. Chambers reports that Mr. Spears is "a phenomenal lawyer" who impresses with his "high energy levels, very thorough technical skills and solid advocacy skills." Chambers reports that Ms. Imes is "a talented and effective lawyer," observed to be "extremely intelligent" and "well versed in the law in her practice area."

In a criminal matter, our primary objective is always to avoid indictment altogether, and we have accomplished that objective in a large percentage of our criminal representations. In non-public investigations we go to great lengths to shield our clients from any publicity, and accordingly we never discuss those matters publicly even after they are completed.

When we represent clients who have been indicted, we bring extensive pretrial and trial experience to bear.

• In United States v. Stein (S.D.N.Y.), a criminal case in which the U.S. Department of Justice indicted 19 individuals for alleged tax shelter fraud involving KPMG, we represented the lead defendant. In that case, we obtained several groundbreaking rulings. In June 2006, the District Court ruled that certain provisions of the Thompson Memorandum, which discouraged the payment of legal fees by a corporation for its employees, violated the Fifth and Sixth Amendments to the Constitution. United States v. Stein, 435 F. Supp. 2d 330 (S.D.N.Y. 2006). That ruling caused the Department of Justice to withdraw the Thompson Memorandum. In July 2007, the District Court dismissed with prejudice all of the government's charges against our client and 12 other defendants based upon the government's interference with KPMG's payment of legal fees for those defendants. United States v. Stein, 495 F. Supp. 2d 390 (S.D.N.Y. 2007). Mr. Spears argued the motion before the District Court that resulted in the dismissal of the indictment. That dismissal was affirmed by the United States Court of Appeals for the Second Circuit in United States v. Stein, 541 F.3d 130 (2d Cir. 2008).

• In recent years we have tried criminal cases before juries in the U.S. District Courts for the Eastern District of New York, the Southern District of New York, the Southern District of Texas, and the New York State Supreme Court in New York City, with notable successes.

We also have represented numerous clients in federal sentencing proceedings. We have broad experience in the pre- sentencing process, including negotiating plea agreements, communicating effectively with the U.S. Probation Office, and preparing a persuasive sentencing memorandum for the court. The firm's lawyers have a comprehensive understanding of the U.S. Sentencing Guidelines and the case law regarding sentencing issues. We have achieved favorable results for our clients who chose to accept a plea rather than going to trial.

Securities Enforcement

The attorneys at Spears & Imes have defended scores of individuals and institutions in investigations by the Securities and Exchange Commission ("SEC"), the National Association of Securities Dealers ("NASD"), the New York Stock Exchange ("NYSE"), and the Financial Industry Regulatory Authority ("FINRA"). As with our criminal representations which are concluded with no charges being brought, most of our representations in the securities enforcement area have been concluded with no action being taken by the regulator and no public allegations of wrongdoing against our clients. However, we have also represented clients in trials in the U.S. District Courts in cases brought by the SEC, in hearings before the SEC, and in hearings before FINRA and its predecessor entities. We have achieved very favorable results for our clients in those proceedings. Chambers & Partners has recognized the firm's "expertise" in securities enforcement defense.

Complex Civil Litigation

The attorneys at Spears & Imes have represented numerous institutions and individuals in civil cases, involving complex financial and other issues. We have experience in every stage of civil proceedings, including drafting pleadings, motion practice, fact discovery, expert discovery, trial, post-trial briefing, and appeal. Notably, partner Sara Shudofsky served for 16 years in the Civil Division of the United States Attorney's Office for the Southern District of New York in senior positions including Chief of the Civil Rights Unit, Deputy Chief of the Civil Division, and Chief Appellate Attorney for the Civil Division. Chambers & Partners has recognized the firm's "expertise" in complex civil litigation.

Significant litigations include:

• The representation of a group of foreign and domestic financial institutions (Allstate, Bank Leumi, Bayerische Landesbank, International Finance Corporation, Société Générale, and Travelers) in a six-week jury trial in the Southern District of New York against a major U.S. investment bank to recover large losses related to the sale of bonds backed by consumer installment loans of Heilig-Meyers. In December 2008, the jury returned a verdict for our clients, resulting in a judgment of $144 million. The jury's verdict was recognized by The New York Law Journal and Incisive Media's VerdictSearch as the third largest verdict in New York state and federal courts in 2008. In May 2009, the District Court denied the defendant's post-judgment motions in an exhaustive opinion, upholding the jury's verdict in favor of the plaintiffs. 646 F. Supp. 2d 385 (S.D.N.Y. 2009). Spears & Imes represented its clients in the appeal, and in July 2010, the Second Circuit Court of Appeals affirmed the judgment. 2010 WL 2836684 (2d Cir. July 20, 2010) (summary order).

• The representation of a group of foreign and domestic financial institutions and hedge funds in a federal securities fraud litigation in Oklahoma to recover hundreds of millions of dollars of losses associated with their purchases of asset-backed securities. In re CFS-Related Securities Fraud Litigation. We achieved a settlement for our clients in which they recovered nearly 100 percent of their losses.

• The representation of MBIA in lawsuits to recoup over $1 billion in potential losses related to a financial guaranty the insurer had given to purchasers of bonds backed by credit card receivables of Spiegel Inc. As a result of the multiple litigations we pursued on behalf of our client, MBIA suffered no loss.

• The defense of MetLife in a complex federal civil litigation in which plaintiffs are seeking indemnification for an alleged breach of contract and recovery under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA").

• The representation of a large British bank in a bankruptcy proceeding in which $400 million worth of receivables of LTV Steel Corporation securing notes issued by LTV to the bank had been taken without notice by the Bankruptcy Court at the commencement of the proceeding and given to other secured creditors. As a result of litigation we pursued in the bankruptcy proceeding and in federal district court, our client ultimately received full payment for all of the wrongfully-taken receivables and reimbursement of all its litigation costs.

• The defense of a publicly-traded company and its board members in a shareholder class-action suit brought under the federal securities laws. At trial in the Eastern District of New York, the jury returned a verdict for defendants on all claims.

• The defense of Columbia University in a federal civil rights action brought against it based on a pharmaceutical drug test program in which members of its medical school faculty had participated. All claims against the University were dismissed with prejudice.

• The representation of Columbia University in a qui tam proceeding based on allegations of improper Medicaid billing for obstetrical services at a University hospital. The matter was favorably resolved for the University.

• The defense of Genentech in a products liability case in New York State court relating to Genentech's patented drug Xolair®. Our motion to dismiss the complaint was granted.

• The representation of the State General Reserve Fund of the Sultanate of Oman in litigation relating to a failed effort at a leveraged buyout by two insiders at Dow Chemical Company.

• The representation of Anthony Mozilo, former CEO of Countrywide Financial Corporation, in federal securities litigations in the Southern District of New York.

• The representation, in federal habeas corpus proceedings, of two prisoners in military custody at the United States Naval Station at Guantanamo Bay, Cuba.

• A variety of licensing industry litigation involving intellectual property and contract rights.

Appeals

Spears & Imes has an active and varied appellate practice. Our lawyers have extensive experience briefing and arguing appeals in civil and criminal cases, in federal and state appellate courts, and in government and private practice. Among the firm's partners who have substantial appellate experience are partner Sara Shudofsky (former Chief of Appeals, Civil Division, United States Attorney's Office for the Southern District of New York) and partner Linda Imes (former Deputy Chief of Appeals, Criminal Division, United States Attorney's Office for the Southern District of New York).

Recent significant representations include:

• The representation of nine Cayman Islands hedge funds in their appeal to the United States Court of Appeals for the Second Circuit from the district court's sua sponte dismissal of the funds' complaint. This appeal raises important questions regarding the application of the Supreme Court's decision in Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869 (2010), which held that Section 10(b) of the Securities Exchange Act of 1934 does not apply extraterritorially.

• The representation of three defendant companies on their appeal to the United States Court of Appeals for the Second Circuit from a judgment entered in a copyright infringement action.

• The representation of a group of six foreign and domestic financial institutions in connection with an appeal to the United States Court of Appeals for the Second Circuit from a judgment in our clients' favor of $144 million after a jury verdict in a federal securities fraud case.

• The representation of the former executive director of the domestic securities lending desk of Morgan Stanley & Co. in his appeal to the United States Court of Appeals for the Second Circuit from a conviction in a federal criminal case arising from an industry-wide investigation into allegations of bribery and kickbacks in the stock loan industry.

• The representation of a former Merrill Lynch compliance employee in an appeal before FINRA's National Adjudicatory Council arguing the limits of FINRA's jurisdiction under NASD Rule 8210.

• Appointment by the United States Court of Appeals for the Second Circuit as pro bono amicus counsel to brief and argue the issue of whether a litigant detained in a mental health facility pursuant to a temporary order of observation under New York Criminal Procedure Law § 730.40 is a "prisoner" within the meaning of the Prison Litigation Reform Act, 28 U.S.C. § 1915(h).