Douglas S. Liebhafsky

Doug draws on decades of intensive and wide-ranging litigation experience, both civil and criminal — bringing unmatched depth and perspective to his work. He has handled high-stakes litigation across a broad range of subject areas, including securities fraud, accountants’ liability, complex commercial disputes, and corporate takeover battles.

Doug began his legal career as Law Clerk to Hon. Warren E. Burger on the District of Columbia Circuit. He then joined the U.S. Attorney’s Office for the Southern District of New York as a Criminal Division AUSA. During his four years there, Doug tried 15 criminal cases to verdict—nearly all before a jury – and argued numerous appeals in the Second Circuit. (In his final year at SDNY, Doug served as Assistant Chief Appellate Attorney.)

Doug then entered private practice at Wachtell, Lipton, Rosen & Katz, where he was a litigation partner for over 30 years. After retiring from Wachtell Lipton, Doug served under Hon. Robert Morgenthau for five-plus years as a Special Assistant DA for New York County. There, Doug was assigned to Investigation Division Central, a unit of senior ADAs conducting grand jury investigations into money laundering, terrorist financing, tax fraud, and other complex financial crimes.

Representative Matters

Over his career, Doug has:

Led a New York County Grand Jury investigation, as a Special Assistant District Attorney, into the use of charities to commit tax fraud—resulting in conviction/disbarment of a prominent class action lawyer, see Matter of Lifshitz, 69 AD3d 8 (2009).
Successfully upheld on appeal, as an Assistant U.S. Attorney, the convictions of Antonio “Tony Ducks” Corallo and his co-defendants in the Jerome Park Reservoir bribery case. See the extensive opinion in Corallo v. United States, 413 F.2d 1306 (2d Cir. 1969).
Advised and assisted, as a Volunteer Assistant New York State Attorney General, 2011-14, on a major Attorney General securities fraud case (People v. Greenberg) (AIG/Gen Re transaction).
Successfully defended a New York Criminal Court Judge against mandamus sought by the New York County District Attorney over Judge’s trial calendar practices, see Morgenthau v. Gold, 69 NY2d 737 (1987).
Successfully defended a movie exhibitor against an “obscenity” injunction action brought by the Essex County, District Attorney against the film “I Am Curious (Yellow).” See Lordi v. UA New Jersey Theatres, Inc., 108 N.J. Super. 19, 259 A.2d 734 (Super. Ct. Ch. Div. 1969)
Represented an all-industry committee of New York City-based TV broadcasters in successful, 1969-70, efforts to persuade the Port Authority not to renege on its agreement to move the broadcasters cost-free from Empire State to the, then under construction, North Tower of the World Trade Center.
Tried to a jury, as lead counsel for the institutional investor plaintiffs, a highly complex securities-fraud case that lasted 7 1/2 months. The case, State Mutual v. Arthur Andersen & Co. (S.D.N.Y. & 2d Cir. 1976-77), arose out of the bankruptcy of Black Watch Farms, a Ponzi scheme structured as a breeding cattle tax shelter. The jury found that Black Watch’s principal bank, defendant Empire National Bank, had been complicit in the fraud and awarded the plaintiffs damages accordingly; the jury was deadlocked (in plaintiffs’ favor) as to Black Watch’s auditor, defendant Andersen.
Had an important role in defending McGraw-Hill against a hostile takeover by American Express Co. Amexco withdrew its offer minutes before Doug was to commence the deposition of its president.
Had an important role in defending Sun Company’s overnight, off-market purchases of approximately 34% of Becton Dickinson’s shares. The trial court ultimately held that Sun’s purchases had constituted a “tender offer,” and thus had been illegal, for want of required SEC filings. Its decision, Wellman v. Dickinson, 475 F.Supp. 783 (SDNY 1979), never reviewed on appeal, has become something of a landmark in “tender offer” law.
Represented Nvidia, as principal counsel, in an arbitration against Microsoft concerning Nvidia chips used for Microsoft’s Xbox (AAA 2002-03).
Defended Salomon Brothers, as principal counsel, in a number of securities-related lawsuits, including, e.g., State of West Virginia v. Salomon Brothers, et al. (1990)—litigation in various state and federal courts arising out of trading losses sustained by State investment fund—and H.F. Ahmanson & Co. v. Salomon Brothers (California state courts 1991-93)—litigation arising out of Ahmanson’s acquisition of Bowery Savings Bank.
Acted as principal counsel for Cantor Fitzgerald in the Delaware Chancery trial of a business control dispute arising from invocation of a partnership agreement incapacity provision to oust the firm’s founder. The case, Cantor Fitzgerald L.P. v. Cantor (Del. Ch. 1996), settled midtrial.
Successfully moved, on behalf of major bankruptcy creditors, to oust Icahn interests from control of Marvel Entertainment, and to install an independent trustee to control that debtor. See In re Marvel Entertainment Group., 140 F.3d 463 (3d Cir. 1998).
Represented lead defendant Philip Morris in proceedings arising out of the $200+ billion settlement of the “Attorney General” cases against the tobacco industry—successfully overcoming objections of various NY governmental entities to their allocated settlement shares. See State of New York v. Philip Morris, Incorporated, 179 Misc.2d 435, 686 NYS2d 564 (Sup. Ct. NY Co. 1998), aff’d, 263 AD2d 400, 693 NYS2d 36 (1^st Dep’t 1999).
Brought a successful motion for postconviction relief on behalf of a felony murder defendant. The Brooklyn District Attorney ultimately consented to vacate the defendant’s conviction after Doug proved that material exculpatory evidence had been withheld from the defense. Doug followed up with a Section 1983 civil rights case against New York City, for failure to properly train and supervise the law enforcement personnel involved. After the Second Circuit upheld Doug’s Section 1983 complaint, see Walker v. City of New York, 974 F.2d 293 (2d Cir.1992), the City settled for a significant sum.

Of Counsel