Proskauer Rose Re: Investrend Communications and FinancialWire
"More importantly, there is no factual basis whatever for your false and defamatory assertion that
DTCC has engaged in “culpable conduct” or that DTCC has engaged in “cheap thuggary” [sic]
and “strong-arm tactics more suitable to organized crime than an SRO,” or for you to be
“appalled” by any conduct of DTCC."
"FinancialWire is not a bona fide news provider), those charges assert, and would be understood
as asserting, criminal misconduct. They are baseless,false, unwarranted, and outrageous, and if
published to a third party libelous per se."
===================================================
1585 Broadway
New York, NY 10036-8299
Telephone 212.969.3000
Fax 212.969.2900
LOS ANGELES WASHINGTON BOSTON BOCA RATON NEWARK NEW ORLEANS
PARIS
Charles S. Sims
Member of the Firm
Direct Dial 212.969.3950
csims@proskauer.com
April 11, 2005
BY FAX – 516-741-5212
Marshal Shichtman, Esq.
Marshal Shichtman & Associates
1 Old Country Road, Suite 120
Carle Place, NY 11514
Re: Investrend Communications and FinancialWire
Dear Mr. Shichtman:
We are counsel to The Depository Trust & Clearing Corporation (“DTCC”), and I write in
response to your letter to DTCC’s General Counsel, Larry Thompson, dated April 5, 2005.
Whether or not the correspondence by DTCC to which you refer has caused “grave concern to
your client in a myriad of aspects,” it is not actionable, and DTCC was fully privileged to send it
under the protections for free speech afforded by New York and federal law.
With respect to your demand concerning the preservation of various materials, apparently in
connection with a lawsuit that your client is pondering, please be assured that DTCC is fully
aware of its responsibilities under the law.
More importantly, there is no factual basis whatever for your false and defamatory assertion that
DTCC has engaged in “culpable conduct” or that DTCC has engaged in “cheap thuggary” [sic]
and “strong-arm tactics more suitable to organized crime than an SRO,” or for you to be
“appalled” by any conduct of DTCC. Those assertions are false and defamatory, and we believe
knowingly so. Unlike the opinions contained in DTCC’s correspondence (e.g., that
FinancialWire is not a bona fide news provider), those charges assert, and would be understood
as asserting, criminal misconduct. They are baseless,false, unwarranted, and outrageous, and if
published to a third party libelous per se.
Marshal Shichtman
April 11, 2005
Page 2
Nothing in your letter suggests that you or your client have the slightest factual basis for charging
DTCC (or “DTC”, as you incorrectly identify it) with extortion, assault, robbery, or similar
crimes, which is what readers would make of your assertions. DTCC takes the matter with
utmost seriousness, and will hold you and your client responsible for any resulting harm. DTCC
has a sterling reputation, as you seem to be aware, hard-won through years of responsible business
meeting the highest standards of conduct, and it ought not be trifled with by careless,
reckless charges such as yours.
We demand that you cease any further dissemination of those charges, and further demand that
you identify any and all such distributions and copy us on the retraction of these charges that
should be forthcoming from you as well. You are advised to take appropriate measures to
preserve, and avoid the intentional or inadvertent destruction of, any correspondence (including
electronic correspondence) concerning this matter, or which relates to the false and defamatory
charges lodged in your letter.
This letter is delivered without waiver of any claim or defense, all of which are expressly
reserved.
Very truly yours,
Charles S. Sims
Marshal Shichtman
April 11, 2005
Page 3
bcc: Isaac Montal
Larry R. Thompson
Gregg Mashberg |
