Firm Obtains Trial Victory in Significant Dispute Involving The Municipal Finance Market

The Firm obtained a trial victory in Delaware Chancery Court on behalf of its client, Preston Hollow Capital (“Preston Hollow”), in a high-profile case against municipal bond giant Nuveen. Following ten weeks of expedited discovery in 2019, and a two-day trial involving more than a dozen witnesses before Vice Chancellor Sam Glasscock III, the Court ruled unequivocally that Nuveen had engaged in a campaign designed to destroy a smaller competitor, Preston Hollow, by using “threats and lies” in order to persuade the largest broker-dealers in the municipal bond industry to boycott Preston Hollow. In his 60-page opinion, the Vice Chancellor held that Nuveen had tortiously interfered with Preston Hollow’s prospective economic relations with municipal bond industry counterparties, but declined to award equitable relief because he did not believe that Nuveen would repeat its tortious conduct again. The Firm continues to represent Preston Hollow in a companion case in Delaware Superior Court seeking damages for Nuveen’s improper conduct.

In his decision, Vice Chancellor Glasscock found that “[t]he evidence [at trial] demonstrated an aggressive and widely dispersed campaign to use almost any pressure necessary to cut off a competitor from its chief source of business as well as its financing. I find that Nuveen was not simply attempting to achieve a competitive edge; it meant to use its leverage resulting from its size in the market to destroy Preston Hollow.” Not only did Vice Chancellor Glasscock find that Nuveen engaged in improper conduct designed to destroy Preston Hollow, he specifically found that Nuveen’s witnesses were not forthright at trial, calling their testimony on cross-examination by the Firm’s lawyers “self-serving and disingenuous." (Preston Hollow also is represented in these Delaware litigations by Morris, Nichols, Arsht & Tunnel of Wilmington, Delaware.)

A copy of Vice Chancellor Glasscock’s April 9, 2020 60-page decision is attached.