Logourl black
From our private database of 14,100+ case briefs...

Litwin v. Blackstone Group, L.P.

United States Court of Appeals for the Second Circuit
634 F.3d 706 (2011)


Facts

Blackstone Group, L.P. (Blackstone) (defendant) was a financial services firm with a significant corporate private equity segment. In 2003, Blackstone purchased a 23 percent interest in stock in insurance company FGIC Corporation (FGIC), which it incorporated into its private equity segment. After Blackstone purchased it, FGIC began providing insurance for collateralized debt obligations and residential mortgage-backed securities backed by subprime mortgages in the form of credit default swaps. By 2007, many subprime mortgage lenders were losing significant sums of money and had begun warning investors of future losses in the subprime market. These losses were part of a general downward trend in the real estate market. Around this time, Blackstone announced an initial public offering (IPO). Blackstone did not inform potential investors of the real estate trends affecting FGIC’s business. At the time of the IPO, Blackstone’s share of FGIC was worth $331 million, 0.4% of Blackstone’s total assets. Litwin (plaintiff) brought a putative class action suit against Blackstone, alleging that Blackstone had violated Item 303 of SEC Regulation S-K by omitting the information related to FGIC in its Registration Statement and Prospectus. Blackstone filed a motion to dismiss, arguing that any omitted information was not material and thus Litwin had not stated a claim on which relief could be granted. The district court granted Blackstone’s motion. Litwin appealed.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Straub, J.)

The holding and reasoning section includes:

  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 222,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.