Sarmad M. Khojasteh’s practice focuses on complex commercial litigation in state and federal courts, and in proceedings before state and federal regulatory agencies. Sarmad represents public and private companies, private equity and other investment firms, partnerships and individuals in industries including financial services, real estate, insurance, media and manufacturing. He handles a broad range of securities and credit-related matters, commercial and contract disputes, corporate governance issues, and governmental investigations for various companies.
Sarmad has been recognized on the Benchmark Litigation Under 40 Hot List, and as a “Rising Star” by Super Lawyers.
- Federal Housing Finance Agency, as conservator for Fannie Mae and Freddie Mac, in actions in federal and state courts against numerous financial institutions and individuals. The lawsuits sought rescission or damages from the banks for, among other things, their misrepresentations concerning pools of mortgage loans that underlie residential mortgage-backed securities the banks issued, securitized and sold to Fannie Mae and Freddie. After prevailing on critical pre-trial issues, FHFA
- settled the actions brought by Kasowitz for over $2 billion, including a $1.25 billion settlement with Morgan Stanley.
- MBIA, one of the world’s largest monoline insurers, in litigation brought by 18 of the world’s largest banks seeking to overturn MBIA’s corporate restructuring which, with the approval of the New York Department of Insurance (now the Department of Financial Services), established a separate company for MBIA’s municipal bond insurance business. After an evidentiary proceeding, the New York Supreme Court ruled in favor of MBIA, upholding MBIA’s restructuring. The banks agreed to drop their challenge to MBIA’s restructuring, and MBIA then received $1.7 billion in cash and a $500 million line of credit for its municipal bond insurance business.
- Successful bench trial in federal court on behalf of an individual lender against a real estate developer, resulting in an award of approximately $13 million.
- A private equity firm in an internal investigation arising from allegations that a current employee misappropriated confidential information from his prior employer.
- A private equity firm in litigation defending against claims that it breached terms of a $750 million secured loan facility.
Last updated: June 2019