On June 25, 2002, in the matter of MDCM Holdings, Inc. v. Credit Suisse First Boston Corp., the U.S. District Court for the Southern District of New York (Scheindlin, J.) denied defendant Credit Suisse First Boston's ("CSFB") motion to dismiss the amended complaint, allowing the case to proceed for class certification and on the merits.

The suit is a class action on behalf of corporations whose Initial Public Offerings ("IPOs") were underwritten by CSFB, which, the suit charges, shared in the profits earned by its favored customers who purchased and then sold the IPOs for very large profits.  The suit alleges breach of contract, breach of implied covenant of good faith, breach of fiduciary duty, and unjust enrichment.  Under the June 25 Order, all claims will go forward.

To read the judge's opinion, and for regular updates about the case, view the case page for this case.  Further inquiries may be directed to H. Laddie Montague, Esq. at (215) 875-3010 or hlm@bm.net.