In an article for the New York Law Journal titled “Judgment Preservation Insurance Emerges as a Valuable Risk Management Option,” Schulte Roth & Zabel of counsel Howard B. Epstein and special counsel Theodore A. Keyes discuss judgment preservation insurance (JPI) and its growing popularity as a valuable risk mitigation tool.

Every now and then, an insurance product emerges that addresses risks in a manner that facilitates transactions such that the product becomes a regular part of the dealmaker’s toolkit. For example, just over a decade ago, RWI policies were introduced and today these policies are a standard requirement in most M&A transactions.

While JPI may not have the impact that RWI has had, the increasing popularity of JPI suggests that insureds are discovering that it is a very useful tool to mitigate risk.

Schulte Roth & Zabel partner Joseph A. Smith was quoted in Jessica Hamlin’s PitchBook article, “Short election periods for secondaries frustrate LPs,” which detailed his recent panel at SuperReturns North America.

On the “Co-investments and continuation vehicles: where should LPs focus their time?” panel, Joe explained that when a GP initiates a secondary transaction, it is working against the clock to negotiate stronger prices with secondary buyers who plan to buy LPs out of their stakes in the fund. “If you slow down the transaction for one particular LP, you’re slowing it down for everybody,” he said.

According to Joe, GPs perform the bulk of the due diligence before they present the LP with the deal, so most LPs should not need a long election period.

“It’s prepackaged due-diligence. If you’re the kind of aggressive LP who gets dirt under your fingernails, you ought to be able to react with some alacrity to a good secondary opportunity,” said Joe.

Read the article.

In the wake of WeWork’s bankruptcy filing, Schulte Roth & Zabel partner Doug Mintz spoke with MarketWatch for their article, “WeWork files for bankruptcy, capping a stunning downfall.” 

Doug spoke to reporter Joy Wiltermuth on the impact of WeWork’s outstanding lease obligations and property valuations, stating, “Typically when a significant tenant goes bankrupt, they have a pretty clear idea of what leases are profitable and what are not.”  

Read the article here. 

The Schulte pro bono team and attorney Damario Solomon-Simmon, representing the survivors of the 1921 Tulsa Race Massacre, filed a final brief to the Oklahoma Supreme Court in an attempt to overturn a previous dismissal by a district court judge. 

As survivor Lessie Benningfield Randle celebrates her 109th birthday and awaits a decision from the court, The New York Times profiled this landmark case in an article that featured the survivors’ legacy of civil rights advocacy.  

Schulte partner Randall Adams spoke with reporter Audra D.S. Burch on the urgency for the lawsuit to be heard in court. Randall explained, “[t]he fundamental point is we should be able to proceed under the law if you actually apply the law to the facts. We should get a chance to prove the case.” 

Read more here.