Milberg has filed an Amicus brief on behalf of a number of labor organizations in Assured Guaranty (UK) Ltd. v. J.P. Morgan Investment Management Inc., an important case in which the New York Court of Appeals will decide the issue of “Martin Act preemption.”

New York’s Martin Act permits the Attorney General to prosecute fraud and deception in connection with the sale of stocks and other securities.  New York’s Court of Appeals has previously ruled that only the Attorney General may assert Martin Act claims -- individual investors cannot.  Many courts have ruled that, because investors cannot assert claims under the Martin Act, they are also precluded from asserting common law claims for breach of fiduciary duty and negligence.  This result -- known as “Martin Act preemption” -- has left many investors without remedy following some of the largest financial frauds in history.  Importantly, neither the Martin Act nor its legislative history calls for preemption of common law claims.

Milberg partners Robert A. Wallner and Jennifer L. Young filed a brief arguing against Martin Act preemption on behalf of the NYS AFL-CIO; the City Employees Union Local 237, International Brotherhood of Teamsters; the Communications Workers of America Local 1180; the Uniformed Fire Officers Association; and the United Federation of Teachers.  To read the brief, click here.