Friday, March 18, 2016

It’s (Risky) Business Time: Gaming Conflicts




"Paul Weiss Missed Caesars Conflict, Examiner Says" --
  • “Paul Weiss Rifkind Wharton & Garrison LLP’s dual representation of Caesars Entertainment’s operating unit and its private equity owner Apollo Global Management LLC created a conflict of interest while the firm worked on a series of controversial transactions involving the casino operator, a Chapter 11 examiner said.”
  • “Although Davis said Paul Weiss should have recognized that a conflict of interest existed, any potential claims creditors could bring against the firm would be weak because evidence collected indicates that lawyers did not knowingly do anything to harm CEOC creditors, the report said.”
  • “’In sum, while a conflict existed which Paul Weiss should have recognized, any claim against Paul Weiss for damages would be weak,’ the report said. ‘Although the conflict was real, and Paul Weiss lawyers should have recognized the need for independent directors and advisors at CEOC by no later than late 2012 – early 2013, and advised its clients accordingly, the evidence does not support a conclusion that Paul Weiss lawyers knowingly acted at any time to injure or prejudice CEOC or its creditors.’”
  • “Creditors of Caesars Entertainment's bankrupt operating unit have actionable legal claims against the parent company and its private equity owners worth between $3.6 billion and $5.1 billion over a series of transactions that stripped value from the business, according to a Chapter 11 examiner.”

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