In December 2001, the Republic of Argentina defaulted on all of its external indebtedness. In December 2006, Hagens Berman filed a lawsuit on behalf of holders of the defaulted Republic of Argentina European Medium Term Note bond with a coupon rate of 9.25 percent and a maturity date of July 20, 2004, and which bears the ISIN XSO113833510 (the Bond).
Named plaintiff Henry Brecher seeks compensation for himself and on behalf of a class of all of those who have continuously held an interest in the bond from Dec. 19, 2006 through the present. The suit seeks to force the Argentine government to honor its agreement with investors, and return the monies invested in the bonds with the promised returns, as well as to pay damages.
In June 2011, the court certified a class of all those who purchased their interests in the bond on or before Dec. 19, 2006, the date this action was commenced, and have held that interest continuously since then. Plaintiff Brecher has already obtained summary judgment against Argentina on the issue of liability to the class.
The court ordered that there be an evidentiary hearing on damages, in order to determine the amount of damages Argentina owes to the class, which was scheduled for April 2016.
CASE TIMELINE
On Apr. 27, 2017, U.S. Judge Thomas P. Griesa issued an order granting final approval of a $3 million settlement for the class of affected investors and praising the firm’s remarkable litigation in a risk-heavy case on behalf of the class. In his order, the judge noted the firm’s 10 years of steadfast dedication, saying “In particular, the class definition and the damages calculations for the class presented novel, complex legal issues requiring lengthy discovery, experts, appeals to the Second Circuit, and hearings. Despite these challenges, Hagens Berman continued litigating on behalf of the class.” The judge’s 39-page order also stated, “Hagens Berman represented the Brecher class faithfully for a decade, appearing before this court and the Second Circuit, advocating for a more inclusive class definition, and filing for summary judgment... Hagens Berman’s willingness to take this case on a contingency basis in spite of the risks involved, and to continue to represent the class even when success appeared unlikely, is a testament to its commitment. The awarded fee will hopefully encourage Hagens Berman to do the same in the future.”
On May 27, 2016, the court preliminarily approved a settlement with Argentina.
A judge has certified a class of bondholders and ordered that they be notified of the pending litigation.
