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O’Melveny’s Dellinger Quoted in The Advocate on Supreme Court Consideration of Stanford RulingJanuary 07, 2013
O’Melveny & Myers LLP partner Walter Dellinger is quoted in the January 08, 2013, The Advocate article Firms appeal Stanford ruling, which concerns a case currently before the US Supreme Court. The Court is expected to rule soon on the question of whether approximately 1,000 Louisiana residents who lost an estimated US$1 billion to Houston investment promoter Robert Allen Stanford can pursue civil suits against law firms, insurance brokers, financial consultants and other professionals who served Stanford. While the US Fifth Circuit Court of Appeals in New Orleans ruled that the investors can pursue their suits against those law firms and service companies, the firms and companies are asking the nation’s highest court to examine that decision, according to the report.
Dellinger, who the article noted is defending the Manhattan-based global law firm of Chadbourne & Parke LLP, has argued that the Supreme Court should not allow the Louisiana investors’ to proceed with their class-action suit in Baton Rouge state court, noting that state-law class actions in securities cases that are nationwide in scope are not permitted by SLUSA. The article reports that Dellinger has written that a decision by the Supreme Court not to consider the professional firms’ appeal of the 5th Circuit decision “would allow this class action — in which plaintiffs seek to recover $7 billion in damages from two respected international law firms — to proceed when, as the United States admits, Congress intended to preclude it.”
Dellinger is a member of O’Melveny’s Appellate Practice and resides in the Firm’s Washington, DC office. He served as Assistant Attorney General and head of the Office of Legal Counsel from 1993 to 1996, and as acting Solicitor General for the 1996-97 Term of the US Supreme Court.