Fontainebleau D&O Settlement ($115 Million Settlement)
McKool Smith secured settlements totaling more than $115 million on behalf of a group of investment funds in connection with a lawsuit filed against Jeffrey Soffer, the billionaire owner of the Fontainebleau Miami, and other directors, officers, and executives involved in the $2.9 billion failed Fontainebleau Resort and Casino project in Las Vegas, Nevada. The settlement was approved by a Las Vegas county judge on February 24, 2015.
The plaintiffs alleged that Soffer and the other defendants defrauded the plaintiffs by misrepresenting the true costs of construction through an elaborate deception involving two sets of books. The case was set to commence trial later this year.
BofA Fontainebleau Investor Settlement (Reported $300 Million Settlement)
McKool Smith filed suit on behalf of approximately 40 lenders and investment companies accusing Bank of America (BofA) of improperly disbursing hundreds of millions of dollars of Term Loan proceeds in connection with the construction of The Fontainebleau Resort project in violation of BofA’s obligations as Disbursement Agent under the Credit Facility.
BofA reported in its February 25, 2015 10-K filing that it had agreed to pay $300 million to settle the suit.
