Carlyle Group Has No Liability in CCC Lawsuit


Williams & Connolly successfully advised The Carlyle Group on the dispute

The Carlyle Group was exonerated in a $2 billion action pending in the Royal Court of Guernsey involving the collapse of Carlyle Capital Corporation (CCC), a $23 billion entity sponsored by Carlyle. The company, which invested almost exclusively in guaranteed government-backed securities, became insolvent at the peak of the 2008 financial crisis, igniting lawsuits against Carlyle on three continents. Claims were filed or threatened to be filed against Carlyle in Guernsey, Kuwait, the Netherlands, Massachusetts, Delaware, Washington D.C., and New York.

Williams & Connolly was tasked with defending each of these claims in simultaneous actions around the world. Prior to the judgment in Guernsey, victories were had in every case culminating in favorable decisions in the First Circuit, Third Circuit, D.C. Circuit, and Delaware Supreme Court. On September 4, 2017, after a six-month trial, the Guernsey trial court found in a 525-page opinion that Carlyle and the directors of CCC acted reasonably and appropriately in the management and governance of the company. Accordingly, the Court dismissed all 187 individual allegations of breach brought by the liquidation trustees of CCC in the largest case ever tried in Guernsey.

The team representing Carlyle and its directors included Bob Van Kirk (Picture), Hack Wiegmann, Sarah Teich, Jessica Richard, Sarah O’Connor, Jonathan Pahl, Yifan Wang, Luke McCloud and Michael Goldsticker.

Involved fees earner: Robert Van Kirk – Williams & Connolly LLP; R. Hackney Wiegmann – Williams & Connolly LLP; Sarah Teich – Williams & Connolly LLP; Jessica Richard – Williams & Connolly LLP; Sarah Lochner O’Connor – Williams & Connolly LLP; Jonathan Pahl – Williams & Connolly LLP; Yifan Wang – Williams & Connolly LLP; Luke McCloud – Williams & Connolly LLP; Michael Goldsticker – Williams & Connolly LLP;

Law Firms: Williams & Connolly LLP;

Clients: Carlyle Group;

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Author: Ambrogio Visconti