Background
A federal judge in New York City, U.S. District Judge Arun Subramanian of the Southern District of New York, has ruled that neither Boies Schiller Flexner nor the legal representatives of its adversaries are eligible for sanctions in a sex-trafficking lawsuit.
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Sanctions Motions Denied
In an order posted Tuesday evening, Judge Subramanian rejected motions for sanctions filed by both parties involved in the case, as reported by Law360.
Lawsuit Details
The lawsuit, brought forth by Boies Schiller on behalf of sex-trafficking victims, targeted a former lawyer and accountant for Jeffrey Epstein, a wealthy financier and convicted sex offender who died by suicide in prison. Boies Schiller’s chairman, David Boies, and co-managing partner, Sigrid McCawley, represented the plaintiffs, alleging that the defendants facilitated Epstein’s sex trafficking activities.
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Sanctions Requests
The defendants, lawyer Darren K. Indyke and accountant Richard D. Kahn, initially sought sanctions, contending in an April 8 motion that the lawsuit should not have been initiated because the lead plaintiff and other victims had signed comprehensive liability releases in exchange for substantial financial settlements.
Boies and McCawley countered with their own sanctions motion on April 19, asserting that the defendants’ motion was riddled with inaccuracies and deserving of sanctions itself. They argued that Indyke and Kahn were directly involved in Epstein’s criminal activities, information that was not known at the time the liability releases were signed.
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Legal Representation
Indyke and Kahn are being represented by Hughes Hubbard & Reed and Patterson Belknap Webb & Tyler.
Judge’s Decision
Judge Subramanian did not provide detailed reasoning for denying the sanctions in the brief order.
