Stephen Plotnick Quoted on the Stoker CDO Case in the NY Observer

Litigation partner Stephen M. Plotnick was quoted in the July 31 New York Observer article “Jury Acquits Brian Stoker in CDO Case, Tells SEC Not to Be Too Discouraged,” addressing a financial crisis-era lawsuit brought by the SEC against Brian Stoker, a former employee of Citigroup. The SEC alleged in the case that Citigroup secretly used a complex transaction known as a CDO to take proprietary short positions on assets that Citigroup, rather than the deal’s manager (an asset management unit of Credit Suisse), selected. In its second day of deliberations following a two-week trial, a jury decided that Stoker hadn’t violated securities laws in connection with his role in the deal. Plotnick stated that the trial “highlights one of the difficulties that the SEC faces in cases like these, which is that it’s difficult to get the Street to testify against the Street,” adding that “It’s difficult to expect that Credit Suisse would concede, ‘We didn’t do our job.’”

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