Lowis & Gellen Attorneys Defeat $15 Million RICO Claim Against UK Trading Firm

Lowis & Gellen attorneys Gerald Haberkorn, Kevin Clancy and Joan Kubalanza recently represented IFX Markets, Ltd., a London based foreign currency trading firm, in defense of a RICO lawsuit filed by former investors in the District of Columbia. The plaintiffs alleged that a former independent contractor of IFX solicited over $5 million in investments in D.C. by fraudulent means and that they ultimately lost the entire amount. They sued IFX directly in the D.C. federal District Court alleging substantive RICO violations and RICO conspiracy, seeking treble damages under RICO of at least $15 million. IFX general counsel, Cary Depel, turned to Lowis & Gellen, which maintains an office in London, to defend the lawsuit. Lowis & Gellen filed a 45-page motion to dismiss the lawsuit for lack of personal jurisdiction against the UK company, and also for failure to state a viable cause of action under RICO. The plaintiffs filed a motion seeking leave to obtain discovery on the jurisdictional issues, which would have imposed tremendous costs on IFX and delays in the proceedings. Lowis & Gellen successfully defeated that motion, arguing that pleadings alone were sufficient to illustrate the lack of jurisdiction against IFX, a foreign entity with no offices in D.C. Ultimately, the District Court issued a 20-page opinion dismissing the case with prejudice based on the lack of personal jurisdiction, and fully adopting the arguments presented by Lowis & Gellen.

After hearing news of the victory, Mr. Depel reported the news to his management saying: “This case had potential $15m exposure. I cannot tell you how pleased I am – this case could have gone to trial and yet we were dismissed out at the pleadings stage! Lowis & Gellen has been worth every penny.” Mr. Depel said that he knew that it is a difficult task to get such a significant case dismissed outright at the pleading stage “but I had confidence in Lowis & Gellen all along.”

Lowis & Gellen Attorney is Panelist at CBA Business Acquisition Seminar

Robert Leavitt, a member of Lowis & Gellen’s Corporate Practice Group, participated as a panelist in the Chicago Bar Association’s seminar, Negotiating The Asset Purchase Agreement For The Sale Of A Business. The well-attended seminar was held on February 8, 2007, at the CBA’s headquarters in Chicago, Illinois, and was broadcast live over the internet though the CBA’s website.

The seminar was about how to successfully negotiate an Asset Purchase Agreement for a client who is selling or buying a business. Mr. Leavitt and five other panelists conducted an improvised mock negotiation using a hypothetical sale of a privately held business. In the course of three hours, the seminar highlighted the key issues commonly raised during such a negotiation and practical ways to resolve them.

Lowis & Gellen’s Corporate Practice Group represents public and private companies in connection with a wide variety of transactions, including mergers, stock purchases and asset acquisitions, divestitures, leveraged buyouts, restructurings and other transactions involving changes in corporate control. For more information on Lowis & Gellen’s Corporate Practice Group, please contact Robert Leavitt at Rleavitt@Lowis-Gellen.com or (312) 628-7199.

Retired Judge Joins Lowis & Gellen

Judge David R. Donnersberger (Retired) joins the firm after 20 years on the bench in Cook County. He was a civil and criminal trial attorney and Assistant State’s Attorney prior to his term in the judiciary and will counsel clients in commercial litigation and in the settlement of arbitration and mediation actions.

Three Lowis & Gellen Attorneys Named Illinois “Super Lawyers 2007”

Partners Pam Gellen, Gerald Haberkorn and Joan M. Kubalanza were recently announced to be among the top 5% of Illinois attorneys and are honored with the designation of “Super Lawyers 2007.” In independent research conducted by Law & Politics, 47,000 Illinois attorneys statewide were polled for their recommendations of colleagues in the law having outstanding skill as legal counselors and advocates. Ms. Gellen has previously been named by Chicago Lawyer magazine as one of Chicago's top twenty tort defense lawyers and was first selected as an Illinois “Leading Lawyer” in 2005.Mr. Haberkorn was a finalist in Fast Company magazine’s 2005 “Fast 50,” as one of the U.S.’s “high impact legal leaders” and was also one of Illinois’ “Leading Lawyers” in 2005.Ms. Kubalanza is a former Associate Judge of the Circuit Court of Cook County, and a senior litigator and appellate attorney in the commercial litigation group at Lowis & Gellen, LLP.

Lowis & Gellen Real Estate Practice Group attorneys to speak at March seminar

David L. Grobart and David C. Ansani, attorneys in Lowis & Gellen’s Real Estate Practice Group, will be presenters at an upcoming continuing education seminar on the complex and multifaceted business of real estate development.“Real Estate Development from Beginning to End,” sponsored by Lorman Education Services, will be held on Friday, March 23, 2007 at 1801 N. Naper Boulevard, Naperville, IL.Seminar highlights will include:· Deal terms in the letter of intent· Preconstruction leasing· Development and redevelopment opportunities· A financing primer· Shopping center redevelopmentThis program is designed for attorneys, business owners, lenders, surveyors, project managers, real estate agents and brokers and other professionals involved in the commercial real estate development process. The Lowis & Gellen Real Estate Practice Group represents clients in all aspects of complex commercial real estate transactions. If you would like more information, please contact David Grobart at dgrobart@lowis-gellen.com or by phone at (847) 282-1201.