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Perry Capital Sued for Breach of Contract, Seeks Dismissal of Suit

Posted on Jan 01, 2016

In July of 2012, Solus Alternative Asset Management, LP brought a breach of contract claim against Perry Capital, LLC, in New York Supreme Court in Manhattan. Solus accuses Perry of making a “willful breach” of its obligations to sell an interest in $195 million worth of claims against the Bernard L. Madoff estate. Solus is seeking $20 million in damages.

As part of its filing, Solus further alleges that Perry had sealed the deal orally, over the telephone, and later through Bloomberg, LP’s “instant messages.” Solus claims that all trades are sealed in such a fashion on Wall Street. Perry, in response, denies the accusations against it, calling the alleged deal only a “preliminary agreement” that was always dependent on the signing of a final contract. Perry stated in a letter to the New York judge that it had emphasized this fact to Solus.

In addition, Perry states that there was no “bilateral deal between Solus and Perry” because the transaction involved a third party. This third party, Deutsche Bank AG, had not yet finalized a plan for how it would reassign the claims to Solus after they had already been pledged to Perry. Both Perry and Solus point to three recorded phone calls between Perry and Deutsche Bank as evidence that supports their separate viewpoints. New York Supreme Court in Manhattan Judge Barbara Kapnick will issue a ruling on Perry’s motion to dismiss the lawsuit.

Contact a New York breach of contract attorney today at (888) 497-3410 for more information about this and other business litigation matters.

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