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David M.J. Rein

Partner

David M.J. Rein

Partner
New York +1-212-558-4000+1-212-558-4000 +1-212-558-3588+1-212-558-3588
[email protected]

David Rein is Deputy Managing Partner of Sullivan & Cromwell's Litigation Group. He represents leading corporations and financial institutions in complex litigation and regulatory investigations in securities, shareholder derivative, class action, antitrust, accounting, tax controversy and other commercial matters. He is a coordinator of the Litigation Group’s insurance practice.

Mr. Rein frequently represents clients in federal and state courts, both at trial and on appeal, and before arbitration panels. Mr. Rein represents clients in regulatory enforcement and other proceedings before the Department of Justice, Securities and Exchange Commission, Financial Industry Regulatory Authority, New York Stock Exchange, Internal Revenue Service and state regulators. Mr. Rein also advises corporate boards of directors, including in conducting special litigation committee investigations and on insurance coverage matters, including directors and officers insurance.

Government Service

Prior to joining S&C, Mr. Rein served as law clerk to the Honorable Paul R. Michel, U.S. Court of Appeals for the Federal Circuit.

Rankings and Recognitions

  • Best Lawyers in America – recognized in the area of Litigation – Insurance (2019)
  • New York Super Lawyers – recognized in the areas of Business Litigation and Securities Litigation (2011-2012, 2014-2019)
  • Law360, Banking Editorial Advisory Board (2015-2018)

Publications

  • “Expert Q&A on Securities Act Claims and SLUSA After Cyan,” Practical Law: The Journal, June/July 2018 (co-authored)
  • “Securities Litigation Involving the Private Securities Litigation Reform Act,” Practical Law: The Journal, October/November 2017 (co-authored)
  • “Supreme Court Certiorari on Non-Disclosure of ‘Known Trends or Uncertainties’ in SEC Filings,” Harvard Law School Forum on Corporate Governance and Financial Regulation, April 2017 (co-authored)
  • "Further Clarity on Duty to Disclose Wells Notices," Law360, January 2016 (co-authored)
  • "New York Appeals Court Provides Guidance For Merger Parties Sharing Privileged Communications," The M&A Lawyer, January 2015 (co-authored)


SELECTED REPRESENTATIONS

Complex Commercial Litigation
  • Representing Volkswagen and Audi in litigations and investigations brought by all 50 states concerning emissions “defeat devices” in new diesel vehicles.
    • Successfully argued motion to dismiss environmental claims brought by the State of Illinois, described by German press agency Deutsche Presse Agentur as a "crucial victory" terminating an action seeking penalties "exceeding 1 billion dollars." Named by AmLaw Litigation Daily as runner up for "Litigator of the Week."
    • Argued appeal in Minnesota Court of Appeals obtaining dismissal of all of Minnesota's claims. Days later, obtained victories in the Alabama Supreme Court and an Ohio trial court dismissing those states' similar claims. Recognized by AmLaw Litigation Daily as runner up for "Litigator of the Week" for these "significant victories."
    • Obtained dismissal of environmental claims brought by the State of Wyoming, which German press described as a “victory which could save the German automotive giant billions of dollars in payouts.”
    • Obtained dismissals of penalty claims brought by Missouri, Tennessee, as well as counties in Florida and Utah, under state and local laws.
    • Separately, negotiated resolutions of consumer and environmental claims with states nationwide, which, together with related settlements, were described by AmLaw Litigation Daily as “without parallel in speed and scope.”
  • Representing Fiat Chrysler Automobiles in obtaining settlements with all 50 states for claims stemming from allegedly excess emissions from approximately 100,000 diesel vehicles.

Securities Litigation
  • Representing the Goldman Sachs Group and its senior executives in a securities class action stemming from the highly-publicized allegations concerning embezzlement at 1Malaysia Development Berhad.
  • Representing Goldman Sachs in putative class action alleging securities fraud in connection with mortgage-related activities and alleged conflicts of interest, including successfully overturning multiyear class certification order on appeal. After district court recertified the class on remand, obtained what Reuters described as "a highly unusual grant" of a second discretionary appeal.
  • Representing Jumia AG, the largest e-commerce company in Africa, in federal and state securities actions stemming from its 2019 initial public offering.
  • Representing Diebold Nixdorf, the world’s largest ATM manufacturer, in securities action following earnings announcement.
  • Represented Mexican airline Volaris in securities litigation stemming from U.S. initial public offering. Obtained dismissal of all claims.
  • Represented a financial institution in securities actions filed in federal and state courts by U.S. and non-U.S. institutional investors in residential mortgage-backed securities.
  • Represented an investment bank in securities class action brought by investors in residential mortgage-backed securities, including obtaining grant of appellate petition to review class certification order.
  • Represented a financial institution in FINRA arbitrations brought by institutional investors in auction rate securities.
  • Represented a financial institution in litigations brought by publicly traded companies alleging stock price manipulation through prime brokerage activities.
  • Represented Goldman Sachs and served as liaison counsel to the dozens of financial institutions named as defendants in hundreds of cases alleging securities fraud in connection with initial public offerings during the “dot com” era, including obtaining landmark appellate ruling vacating class certification order.
  • Represented an investment bank in securing dismissal and ultimate affirmance by the U.S. Supreme Court of 15 securities actions alleging improper “short swing” profits in connection with initial public offerings.
  • Successfully prevailed at trial and on appeal in defending the Chairman and CEO of Vornado Realty Trust against federal securities claims.
  • Counsel to the former CEO of a Fortune 500 technology company in securities litigation and shareholder derivative litigation concerning grants of stock options.
Shareholder Derivative Litigation
  • Representing Goldman Sachs and its board in shareholder derivative litigation concerning 1Malaysia Development Berhad.
  • Representing the board of directors of Goldman Sachs in Delaware shareholder derivative litigation challenging director compensation.
  • Represented Grupo México, S.A.B. de C.V. in successfully resolving Delaware derivative litigation challenging acquisition of power plants.
  • Represented an investment bank and its board in obtaining dismissal by the Delaware Court of Chancery of shareholder derivative action challenging compensation practices and mortgage-related activities, as well as affirmance on appeal by the Delaware Supreme Court.
  • Represented Goldman Sachs and its board in obtaining dismissal, denial of plaintiffs' fee petition, and affirmance on appeal of shareholder derivative action in the New York Supreme Court, Commercial Division, challenging compensation practices.
  • Obtained dismissal and affirmance on appeal of shareholder derivative action against a financial institution and its board alleging proxy statement misstatements regarding stock option valuations.
  • Represented a financial institution and its board in obtaining dismissal of shareholder derivative action alleging breaches of fiduciary duty in connection with mortgage servicing activities.
  • Represented a financial institution and its board in obtaining dismissal of shareholder derivative litigation asserting claims in connection with the market-wide disruptions affecting auction rate securities.
Antitrust Litigation
  • Represented an investment bank in obtaining dismissal and affirmance on appeal of putative antitrust class actions brought on behalf of purchasers and issuers of auction rate securities.
  • Represented Goldman Sachs in obtaining dismissal and ultimate affirmance by the United States Supreme Court of putative class action alleging violation of federal and state antitrust laws in connection with numerous initial public offerings of “dot com” companies.
Government Investigations and Tax Controversy
  • Represented a financial institution affiliate in connection with allegations of corruption of local officials in municipal financing in Jefferson County, Alabama, including in government investigations and in obtaining dismissal of claims.
  • Together with members of the Firm’s Tax Group, represents U.S. and non-U.S. clients in tax controversy matters, including responding to IRS administrative proceedings and litigating in U.S. Tax Court.
  • Represents corporations and financial institutions in SEC, FINRA and other regulatory inquiries on matters including insider trading and alleged violations of federal and state securities laws.