Ruling on the pending appeal filed by a group of ELNY “shortfall” payees, a unanimous four-judge panel rejected the claim that payees “were denied due process, either in the manner in which . . . notice was provided to them or in the conduct of the hearing.” The panel also rejected the payees’ challenge to provisions of Justice Galasso’s order immunizing the ELNY receiver from liability. Barring an appeal to the New York Court of Appeals (which seems unlikely), the Appellate Division’s ruling should permit implementation of the Restructuring Agreement and formal liquidation of ELNY to occur within the next several months.
On February 6, 2013, attorney Edward Stone filed a notice of voluntary dismissal without prejudice of the ELNY class action against the Superintendent of Financial Services and others that had been pending in the United States District Court for the Southern District of New York. When a case is dismissed without prejudice it means "without any loss or waiver of rights or privileges". In other words a case that is dismissed without prejudice can be re-filed, if conditions warrant.
There is no mention of yesterday's action on Attorney Stone's website.
Patrick Hindert' s blog which has also provided coverage of the ELNY matter, inaccurately stated on February 7, 2013, that "the ELNY class action lawsuit is still pending despite arguments on behalf of Superintendent Lawsky seeking dismissal".