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Birkenfeld v. UBS AG

Supreme Court, Appellate Division, First Department, New York.
May 21, 2019
172 A.D.3d 566 (N.Y. App. Div. 2019)

Summary

In Birkenfeld v. UBS AG, 100 N.Y.S.3d 23 (1st Dep't 2019), the plea allocution and alleged defamatory statement were nearly identical.

Summary of this case from Barbash v. STX Fin., LLC

Opinion

9259 Index 154000/17

05-21-2019

Bradley C. BIRKENFELD, Plaintiff–Appellant, v. UBS AG, et al., Defendants–Respondents.

Fick & Marx, Boston, MA (Nancy Gertner of the bar of the Commonwealth of Massachusetts, admitted pro hac vice, of counsel), for appellant. Cahill Gordon & Reindel LLP, New York (Charles A. Gilman of counsel), for respondents.


Fick & Marx, Boston, MA (Nancy Gertner of the bar of the Commonwealth of Massachusetts, admitted pro hac vice, of counsel), for appellant.

Cahill Gordon & Reindel LLP, New York (Charles A. Gilman of counsel), for respondents.

Sweeny, J.P., Gische, Tom, Gesmer, Singh, JJ.

Order, Supreme Court, New York County (Sherry Klein Heitler, J.), entered January 12, 2018, which granted defendants' motion to dismiss the complaint, unanimously affirmed.

Plaintiff pled guilty in the U.S. District Court for the Southern District of Florida to one count of conspiracy to defraud United States authorities. As part of his plea agreement, plaintiff admitted to illegal conduct, including, inter alia, that he "prepared false and misleading IRS Forms" and assisted "wealthy U.S. clients in concealing their ownership of the assets held offshore." These admitted facts support the conclusion that defendants' quoted statements, published subsequently in the New York Post and Bloomberg BNA, that plaintiff was "convicted in the U.S. for, among other things, having lied to the U.S. authorities," were, at a minimum, substantially true, if not absolutely true. Since truth is a complete defense to a defamation claim, dismissal of the complaint was warranted ( Dillon v. City of New York, 261 A.D.2d 34, 38, 704 N.Y.S.2d 1 [1st Dept. 1999] ; see Stepanov v. Dow Jones & Co., 120 A.D.3d 28, 34, 987 N.Y.S.2d 37 [1st Dept. 2014] ).

We reject plaintiff's argument that the statements were defamatory by implication ( Stepanov, 120 A.D.3d at 37–38, 987 N.Y.S.2d 37 ). Both articles in which the statements were published addressed plaintiff's conviction in detail and made clear that plaintiff was convicted for his conduct in the tax fraud scheme, not that he lied to the government during his conduct as a whistleblower (see Stepanov, 120 A.D.3d at 38, 987 N.Y.S.2d 37 ).

Having determined that the statements were substantially true, we do not reach the issue of whether they are also protected by the statutory privilege of Civil Rights Law § 74.


Summaries of

Birkenfeld v. UBS AG

Supreme Court, Appellate Division, First Department, New York.
May 21, 2019
172 A.D.3d 566 (N.Y. App. Div. 2019)

In Birkenfeld v. UBS AG, 100 N.Y.S.3d 23 (1st Dep't 2019), the plea allocution and alleged defamatory statement were nearly identical.

Summary of this case from Barbash v. STX Fin., LLC
Case details for

Birkenfeld v. UBS AG

Case Details

Full title:Bradley C. Birkenfeld, Plaintiff-Appellant, v. UBS AG, et al.…

Court:Supreme Court, Appellate Division, First Department, New York.

Date published: May 21, 2019

Citations

172 A.D.3d 566 (N.Y. App. Div. 2019)
172 A.D.3d 566
2019 N.Y. Slip Op. 3924

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