Michael S. Kraut

Michael is rated for commercial litigation by Chambers USA, which notes that he “thinks deeply and effectively about complex matters. He is thorough, committed and really gifted at protecting and advancing his clients’ interests.” The Legal 500 described Michael as “creative, thoughtful, and knowledgeable” and recognized that he is noted for his “knowledge of changing trustee practices based on industry developments and case law evolution.”

Michael is a member of the firm’s Advisory Board and a member of the firm’s Inclusion Committee. In recent years, Michael also served as a deputy practice group leader for the firm’s litigation practice, a co-leader of the firm’s banking industry team, and the leader of the New York office’s litigation practice. 

• Represented residential mortgage-backed securities (RMBS) trustees in defense of more than a dozen class, derivative, and individual actions brought by investors in certificates issued by RMBS trusts, alleging claims for, among other things, violation of the Trust Indenture Act of 1939, breach of fiduciary duty, and breach of the trust agreements in federal and state courts
• Represented a national bank in defense of multiple class actions alleging breaches of statutory and common law claims in connection with Small Business Administration Paycheck Protection Program loans pursuant to the CARES Act
• Represented an indenture trustee in defense of breach of indenture claims brought by corporate debt noteholders relating to alleged failure to enforce the issuer’s covenant breaches
• Represented a large international bank in pursuing breach of contract claims against distressed debt transaction counterparties
• Represented RMBS trustees in defense of numerous nationwide class actions brought by mortgage loan borrowers asserting claims for, among other things, consumer unfair and deceptive trade practices and/or asserting that the trustees lacked standing to enforce notes and mortgages that had been securitized
• Represented RMBS trustees in connection with judicial proceedings involving multibillion-dollar settlements negotiated between investors and sponsors concerning sponsors’ liability for representations and warranties
• Represented a global asset manager in defense of discrimination claims in connection with a large commercial real estate transaction 
• Represented national banking institutions in defense of federal and state regulatory investigations and qui tam actions related to residential mortgage-backed securitization
• Represented a trustee of GNMA Guaranteed Grantor Trusts in defense of federal court action filed by residual class holders alleging a breach of contract claim
• Represented a large commodities broker in action against customer’s controlling shareholder and its corporate affiliate to reform and enforce a guaranty of a commodities trading account
• Represented an indenture trustee in defense of breach of contract and breach of fiduciary duty claims asserted by a trust investor that purchased credit-linked notes in a transaction in which it wrote loss protection on a portfolio of loans
• Represented a broker-dealer, bank, and investment adviser in defense of an action brought by a limited partner in an exchange fund alleging breach of contract and fraud
• Represented hedge funds in defense of SEC investigations concerning compliance with federal securities laws and regulations, including issues relating to material nonpublic information, trading around secondary and follow-on offerings, and spread of rumors
• Represented one of the world’s largest mutual fund complexes in an SEC investigation relating to best execution of equities trading