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Kathleen S. McArthur

Partner

Kathleen S. McArthur

Partner
Washington, D.C. +1 202-956-7591 +1 202-956-7591 +1-202-293-6330+1-202-293-6330
New York +1 212-558-4321 +1 212-558-4321 +1 212-291-9458 +1 212-291-9458
[email protected]
Kathleen S. McArthur, co-head of S&C’s Securities & Commodities Investigations and Enforcement practice and the Firm’s Commodities, Futures and Derivatives practice, has advised some of the world’s biggest companies on major matters involving complex financial products, including enforcement inquiries, internal investigations and commercial litigation. Katy has a keen understanding of financial markets that enables her to advocate effectively for clients facing even the most complex allegations of fraud or market manipulation, including proceedings brought by the CFTC, SEC, FERC and DOJ.

Ms. McArthur has been recognized by leading publications, including as a “Rising Star” by New York Super Lawyers, Who’s Who Legal: Investigations and by The Legal 500 United States, and is a Fellow of the Leadership Council on Legal Diversity. She also was a member of the Sullivan & Cromwell team that was awarded The Legal Aid Society’s 2018 Pro Bono Publico Award. She is a native speaker of Spanish and also is fluent in Portuguese.

SELECTED REPRESENTATIONS

White-collar and Regulatory Matters
  • JPMorgan in achieving resolutions with the DOJ, the CFTC and the SEC, resolving multi-year investigations into alleged “spoofing” by JPMorgan traders in the precious metals and U.S. treasuries markets, and manipulation of precious metals barrier options.
  • Scotiabank in obtaining global coordinated resolutions with the DOJ and CFTC resolving  investigations of spoofing involving precious metals futures contracts as well as alleged failures to provide pre-trade mid-market marks to swap counterparties and other swap dealer compliance issues.
  • Tower Research in connection with coordinated DOJ and CFTC resolutions relating to spoofing activity by three former Tower traders. In November 2019, Tower entered into a Deferred Prosecution Agreement relating to the traders’ activity and simultaneously settled a parallel CFTC investigation of the same activity.
  • ​Barclays in the investigation and resolution with the DOJ, CFTC, the U.K. FCA, and other regulators of matters relating to voice and electronic trading in the global FX Spot Market.
  • Major energy firm in connection with inquiries by the CFTC and other regulators relating to trading in physical energy products and related financial instruments.
  • Numerous companies in SEC and CFTC enforcement inquiries relating to digital assets.
  • Numerous financial institutions in investigations by FINRA, the NFA and other self-regulatory organizations.

Civil Matters
  • Barclays in multi-district litigation brought by major pension funds and institutional investors alleging banks violated antitrust laws by colluding to rig the $13 trillion market for Treasury securities.
  • Major manufacturer of building materials in a multidistrict and class action litigation, in connection with an alleged product defect and consumer fraud.
  • 18 of the world’s largest financial institutions in fraudulent conveyance and Article 78 actions against the New York State Insurance Department and the bond insurer MBIA Inc. and its subsidiaries challenging their $5 billion restructuring during the financial crisis.
  • UBS in securities class action and shareholder derivative litigation arising out of the accounting fraud of former UBS investment banking client HealthSouth Corp.
  • An investment bank in connection with fraudulent conveyance claims brought by liquidators of a Cayman hedge fund.
  • Major automotive manufacturer in connection with breach of contract claims against one of its suppliers.

Rankings and Recognitions
  • Who's Who Legal: Investigations (2020)
  • The Legal 500 United States (2018)
  • New York Super Lawyers "Rising Star" (2014–2018)
  • Fellow of the Leadership Council on Legal Diversity
  • Recognized as a member of the Sullivan & Cromwell team awarded The Legal Aid Society’s 2018 Pro Bono Publico Award