April 20, 2022

Law firm defending Russia's VTB Bank asks to exit U.S. case over downed flight - Reuters

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U.S. law firm Latham & Watkins on Tuesday sought to end its representation of VTB Bank in a lawsuit stemming from the 2014 downing of a Malaysia Airlines flight above eastern Ukraine, leaving it unclear who will defend the sanctioned Russian bank.

Latham's Manhattan federal court filing appears to mark the first time lawyers for a Russian entity have formally moved to exit an active U.S. court case since Russia invaded Ukraine in February. A federal judge must approve the firm's withdrawal.

The New York lawsuit was brought by the family of American Quinn Lucas Schansman, who was killed when the airliner was downed. The complaint says VTB and fellow Russian lender Sberbank funneled money to a Russian separatist group that allegedly shot down the plane. The Russian banks have both denied those claims, but last year failed to convince the judge to dismiss the case on jurisdictional grounds.

Latham partner Christopher Harris and attorneys for the Schansman family at Jenner & Block did not immediately respond to requests for comment on Tuesday's request.

Latham told U.S. District Judge Andrew Carter that VTB Bank has “assented” to the law firm withdrawing from the case, and said the firm is following its obligations under rules of professional responsibility. It said it could provide more detail to the judge privately on its reasons for withdrawing.

VTB Bank, Russia's second-largest bank, has been sanctioned by U.S., UK and EU authorities over the Ukraine invasion. U.S. law firms are not automatically barred from representing sanctioned clients.

Tuesday's filing said VTB’s next deadline in the litigation is not until July, and that the information-gathering phase of the case is set to continue until January 2023, “which leaves VTB ample time to secure new counsel.”

Attorneys with U.S. law firms White & Case and Debevoise & Plimpton, defending Sberbank in the same case, have said in court papers they are also ending their representation of the bank. Those lawyers have not officially moved to withdraw from the litigation, but have asked the judge to pause the case while Sberbank hires new attorneys. That request is pending.

Lawyers for the Schansman family have previously said they do not oppose Debevoise and White & Case leaving the case, but indicated they do not want the litigation to be delayed.

Other courts have rejected bids by lawyers for Russian entities to pause litigation so new attorneys can be substituted.



source: https://www.reuters.com/legal/law-firm-defending-russias-vtb-bank-asks-exit-us-case-over-downed-flight-2022-04-20/

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