Weil Gotshal settled the long-running dispute, which was based on the structuring of a collateralised debt obligation (CDO), last week (19 April) following brief discussions with the judge in charge of the case. The case was due to go to court this week (23 April).
RBS had claimed Weil Gotshal failed to advise National Westminster Bank and Greenwich Natwest — which were taken over by RBS in 2000 — on the correct commercial value and integrity of the cash CDO after it proved unprofitable. The dispute is believed to be the first time a bank has sued a legal adviser over the structuring of a CDO.
Weil Gotshal was advised by Lovells litigation partner Graham Huntley, while RBS was represented by Freshfields Bruckhaus Deringer head of finance litigation Andrew Hart. Fountain Court Chambers’ Michael
The settlement will pave the way for Weil Gotshal and the bank to work together in the future.
A joint statement issued by RBS and Weil Gotshal said both sides were pleased to have reached a “satisfactory resolution” of the proceedings.
It added: “Both RBS and Weil Gotshal look forward to the development of a mutually beneficial business relationship in the future.”
