Opinion
22-cv-3897 (LAK)
06-06-2022
SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. STRAIGHTPATH VENTURE PARTNERS LLC, et al., Defendants.
ORDER
LEWIS A. KAPLAN, UNITED STATES DISTRICT JUDGE
In addition to the candidates proposed by the parties, the Court is considering for appointment as receiver Hon. Melanie Cyganowski, former Chief Judge of the United States Bankruptcy Court for the Eastern District of New York and now a member of the firm Otterbourg P.C. A copy of her resume is attached.
For your information, the Court has been advised by Judge Cyganowski that the SEC approached her some time ago concerning service as a receiver in this case and requested that she run conflicts and provide a proposal. An entity called Flexport Capital LLC is a client of Otterbourg, and the name “Flexport” appeared on a list of names provided by the SEC to Judge Cyganowski. Judge Cyganowski does not know whether Flexport Capital LLC is the same “Flexport” that was on the SEC's list but was advised that it would not be a conflict.
If appointed, Judge Cyganowski and Otterbourg attorneys and professionals that assist her with this engagement would bill at their hourly rates. Judge Cyganowski's current hourly billing rate is $1,470/hour. The standard hourly billing rates (subject to annual adjustments) for the Otterbourg attorneys who might work on this matter range from $695 to $ 1, 235 for Members of the Firm and Of Counsel; $295 to $860 for Associates; and $345 for Paralegals. Otterbourg would also utilize less expensive junior attorneys whenever possible, under the super-vision of more experienced attorneys, but at a lower rate.
Judge Cyganowski is prepared to maintain her current hourly rate for the duration of the case, although the Otterbourg hourly rates may increase in accordance with its typical annual review in October. As an additional public service accommodation, for her own time spent on this matter, Judge Cyganowski is prepared to apply a 25 percent public interest discount to the aggregate fees that she bills and Otterbourg will discount the total Otterbourg fees billed by 10 percent. These accommodations are similar to those voluntarily given in her last appointment by the SEC in the Platinum Funds receivership case. In that case, Judge Cyganowski agreed to maintain her hourly billing rate at the rate that was in effect at the time of appointment and, additionally, she agreed to reduce her aggregate fees by 20 percent and Otterbourg's aggregate fees by 10 percent. There were additional accommodations with respect to specific litigation matters in the Platinum Funds case.
Otterbourg would also bill for its expenses that are permitted to be charged to a receivership estate in accordance with the SEC Guidelines.
Any objections to the appointment of Judge Cyganowski shall be filed on or before June 10, 2022.
SO ORDERED.