Schulte Roth & Zabel LLP

Is regulation of litigation finance on the horizon? As the litigation finance industry matures, the push for regulation is gaining momentum. But what exactly are the latest developments at the federal, state, and court levels? And how is the industry responding? At the 7th Annual LF Dealmakers Forum on September 17-19 in NYC, our panel of experts will dive into these crucial topics during “The Policy Briefing: Navigating the Regulatory Landscape,” covering: 💡 Key updates from federal and state agencies 💡 Court rulings shaping the industry  💡 The ongoing push for regulation 💡 How the industry is responding and adapting Panel of experts: • Courtney Quish Managing Director, Fortress Investment Group • Victoria Sahani, Professor of Law, Boston University School of Law • Boris Ziser, Partner, Schulte Roth & Zabel LLP Following the panel, all attendees will be invited to a working session to contribute ideas and learn how to best prepare and advocate effectively. 📣 The event is just 3 weeks away on September 17-19 in NYC, and it’s expected to sell out fast—don’t miss your chance to join the conversation. Register now! https://lnkd.in/ezf5X34y #LFDealmakers #LitigationFinance #RegulatoryUpdate #PolicyBriefing

I am excited to share that I will be joining Schulte Roth & Zabel LLP as a 2025 summer associate in their New York office! Looking forward to getting started! #SchulteSummer

On Aug. 19, 2024, the SEC charged Obra Capital Management, LLC with violating the Pay-to-Play Rule (the “Rule”) under the Investment Advisers Act of 1940 due to a campaign contribution made by an individual prior to joining Obra Capital. This individual's contribution to a Michigan official, who had influence over hiring investment advisers for the Michigan Public Employees’ Retirement Fund—an investor in a fund managed by Obra Capital—led to charges despite the contribution occurring several months before they became a “Covered Associate” of Obra Capital.     As the momentum of the 2024 election season accelerates, and a record number of campaign contributions are made, this case serves as a very timely reminder to investment advisers (registered advisers and exempt reporting advisers alike) that the Rule includes a “look-back” provision that brings into scope contributions made by an individual prior to becoming a Covered Associate of an adviser. Additionally, this case reminds investment advisers that the SEC will bring actions entirely devoid of any intent to influence state or local pension plan investment decisions.     Learn more in this Alert: https://bit.ly/4dP20op     Authors: Christopher Avellaneda | Allison Bernbach (Scher) | Michael Didiuk | Marc Elovitz | Kelly Koscuiszka      #SchulteLaw #PayToPlay 

Looking forward to discussing the evolving regulatory landscape with my co-panelists at the LF Dealmakers Annual Forum on September 19th. We'll be exploring significant updates at both federal and state levels, as well as the industry's adaptation to these changes. Register to join us: https://lnkd.in/ezf5X34y 

Schulte partner Martin Sharkey was featured in a PitchBook article that discussed the wide array of tools European Collateralized Loan Obligation (CLO) managers have to handle stressed and distressed assets. According to the article, the expected restructuring of Altice France's debt could compel CLO managers to reclassify some obligations, potentially using less common tools like uptier priming debt, loss mitigation obligation or bankruptcy exchange buckets. Despite their underuse, these tools are crucial in a challenging market with sophisticated sponsors. Martin highlighted the balance CLO managers must strike between flexibility and investor safeguards. He noted that managers appreciate the flexibility to add loss mitigation obligations and uptier priming debt to their portfolios, but often face pushback from debt investors who want to limit this flexibility, particularly for tools that require expertise in debt restructuring. Martin further explained that these tools are seen differently by various investor groups, with some viewing them as essential defense mechanisms, while others prefer to limit their use due to concerns over manager expertise. Read more: https://bit.ly/3Xsscj6  #SchulteLaw #StressedAssets

Schulte partner Douglas Mintz was recently quoted in an article discussing the evolving legal landscape surrounding "good faith" bankruptcy filings, particularly in the context of Johnson & Johnson's ongoing talc-related litigation. Doug noted that a seemingly healthy entity might still file for Chapter 11 due to "contingent liabilities that aren’t obvious to an observer," highlighting the complexities courts face in determining good faith. Commenting on the ongoing challenges in these cases, Doug described the “never-ending metronomic back and forth where bankruptcy lawyers push the boundaries.”    Read the article to learn more about this important issue: https://bit.ly/3Z5Ojgy     #SchulteLaw #GoodFaithFiling #BankruptcyLaw

Schulte partner Kelly Koscuiszka provided analysis for an article that discussed the recent CrowdStrike outage as a test case for the new Form PF amendments, which require large hedge fund advisers to file a report within 72 hours of significant disruptions to "critical operations." The outage, which affected millions of Windows devices, prompted fund managers to consider whether they needed to file a report. However, the impact on the hedge fund space was minimal and most managers did not find the outage significant enough to trigger a report, noted Kelly.   Kelly explained that while the outage did not impact most clients, fund managers were generally prepared to assess such disruptions and determine their reporting obligations. She emphasized the importance of having clear policies and documentation for such events. Although the SEC did not provide specific guidance during the outage, the incident served as a reminder for fund managers to stay vigilant and ensure that any potential disruptions are properly evaluated and documented. Read more: https://bit.ly/3XquEXt #SchulteLaw #GeorgetownLaw

I really enjoyed presenting at National Society of Compliance Professionals’ recent webinar, “Artificial Intelligence and Technology Compliance Challenges,” along with Chad Nichols and Bart Layton. The panel included an interactive discussion in which compliance considerations for AI transcripts and notes were top of mind for many attendees.  #SchulteLaw #AI #PrivateFundCompliance

Schulte partner and co-head of the Finance Group Boris Ziser was recently featured in the Legal Funding Journal Community Spotlight. “With its uncorrelated investment opportunity and plethora of rules that vary by jurisdiction (State-by-State and international), litigation funding is a complicated asset class that is rewarding at the same time, as it enables those with meritorious claims, but without the necessary resources, to pursue justice.” - Boris Ziser Learn more about the firm's Finance Group: https://bit.ly/3yJaCxJ  #SchulteLaw

Schulte’s representation of the Amalgamated National Health Fund was highlighted in The Associated Press article, “Gov. Jim Justice tries to halt foreclosure of his West Virginia hotel as he runs for US Senate.” The article reports that Amalgamated sent a letter to about 400 employees at The Greenbrier hotel saying that they will lose health care coverage Aug. 26 unless Justice’s family pays $2.4 million in missing health fund contributions. The Schulte team is being led by Ron Richman, co-head of the Employment & Employee Benefits Group, with associate Abdul Alwattar. Read more: https://bit.ly/4cC3Vew #SchulteLaw