Richard C. Schoenstein

Partner, Vice-Chair of Litigation and Co-Chair of Securities and Financial Services Litigation Group

P 212.216.1120   F 212.216.8001
1350 Broadway
New York, NY 10018

 

Richard C. Schoenstein

Partner, Vice-Chair of Litigation and Co-Chair of Securities and Financial Services Litigation Group

P 212.216.1120   F 212.216.8001   rschoenstein@tarterkrinsky.com

Rich Schoenstein is the vice chair of the firm’s Litigation Department and co-chair of its Securities and Financial Services Litigation Group. Drawing on 30 years’ experience navigating corporate and employment disputes, Rich partners with his clients to address their emerging needs, handle their most business-critical disputes and otherwise protect their interests. 

Rich has represented a wide range of clients — including sole proprietors, emerging companies, public corporations, and financial institutions — to handle trials and appeals, arbitration and mediation, and internal and external investigations arising in numerous industries and substantive areas of law. He represents clients in state and federal courts across the country, with considerable experience in the New York State Supreme Court’s Commercial Division and the U.S. District Courts for the Southern and Eastern Districts of New York, as well as in alternative dispute resolution venues such as JAMS and the American Arbitration Association.

Utilizing his skills and considerable experience, Rich zealously represents his client in pursuit of their objectives. He understands business goals and risk tolerance, appreciating that differing circumstances require disparate approaches. Accordingly, Rich’s clients can be confident whether they need highly aggressive litigation or a more diplomatic approach. He has amassed plenty of wins in court and arbitration, but many of Rich’s greatest victories are ultimately reflected in advantageous settlements that optimize his clients’ risks and rewards.

Rich focuses his practice on four core areas:

General Commercial Litigation

Clients rely on Rich as a go-to trial lawyer for their most complex disputes involving commercial contracts, allegations of fraud or breach of fiduciary duty, conflicts arising from real estate deals and corporate transactions, partnership disagreements and business divorces, debt enforcement and collection, professional liability matters, insurance and reinsurance controversies, and other business disputes. Rich’s recent accomplishments include:

  • Representing an enterprise information management company in federal court contract and business tort claims against a software company, using an application for preliminary relief to obtain an agreement precluding suspension of software licenses.
  • Obtaining monetary award and dismissal of all counterclaims in AAA arbitration on behalf of payment processor against a former sales agent entity, following five-day evidentiary hearing.
  • Representing a software developer against a major insurance company in federal court matter asserting breach of contract and other claims, defeating the defendant’s motion for summary judgment and readying the case for trial.
  • Defending the seller of a destination resort in state court dispute arising from a purchase and sale agreement, obtaining a favorable decision from the New York Appellate Division, which dismissed claims of fraud and punitive damages, leading to the resolution of the matter.
  • Representing the sellers of automobile dealerships in successfully defeating a motion for a preliminary injunction to block the transaction and subsequently resolving the dispute.
Securities, Financial Services, and Antitrust Litigation

Covering much ground over the years, Rich handles securities fraud actions, class actions and multidistrict litigation, individual customer complaints and FINRA arbitrations, and antitrust litigation. Among other things, Rich’s work in this area has included:

  • Representing clients in multidistrict litigation and mass actions arising from securities fraud allegations, including matters involving the collapse of WorldCom, market timing and late trading, auction rate securities, foreign exchange benchmarking, and limited partnership sales practices.
  • Defending numerous companies, officers, and directors in individual securities fraud litigation under Sections 10(b)(5) and 16(b) of the Securities Exchange Act of 1934.
  • Defending pharmaceutical companies in multidistrict and consolidated antitrust actions.
  • Representing clients in defense of claims by financial institutions.  Victories in this regard include obtaining reversal by New York Appellate Division of order of attachment and preliminary injunction, and successfully defending alleged guarantors of bank loans by pursing lender liability counterclaims, surviving motion practice, and obtaining a favorable resolution.
Employee Mobility and Other Employment Matters

Rich regularly advises employers and employees on employment mobility issues and has handled numerous conflicts involving restrictive covenants, potential breaches of employee fiduciary duties, and alleged misappropriation of trade secrets or other confidential information. Rich has represented clients in connection with high-profile relocations between competing companies such as IBM and Intel, Dannon and Chobani, Allergan and Nestle, Verizon and Telx, and BlackRock and Drake Management LLC. He often works in connection with the relocation of financial advisers and other financial services professionals, as well as in the context of law firm partnership and partner mobility matters.  Recent highlights include:

  • Representing an employer in an action against former senior employees and their new competitive business, successfully obtaining a decision following eight-day bench trial in which the court found misappropriation of trade secrets and breach of fiduciary duty and awarded monetary damages and injunctive relief.
  • Representing numerous employers in actions to enforce post-employment restrictive covenants, seeking and obtaining preliminary relief, and achieving prompt and advantageous resolutions.
  • Defending mortgage brokers who moved firms, obtaining summary judgment that dismissed their former employer’s $15 million federal court lawsuit for breach of fiduciary duty, violations of the Computer Fraud and Abuse Act, and other alleged causes of action.
  • Defending an operations employee departing Verizon through expedited discovery and bench trial, resulting in dismissal of all financial claims.
  • Defending employers in disputes involving allegations of workplace discrimination and harassment, including proceedings before the Equal Employment Opportunity Commission, the New York State Department of Labor, and courts, including obtaining a dismissal of associational discrimination claims on a 12(b)(6) motion.
Internal and External Investigations

In sensitive matters that require independent investigation and assessment, Rich provides thorough review and reporting on behalf of his clients. Rich leads teams that are handling these business-critical matters internally and in response to external investigations initiated by governmental agencies or self-regulatory organizations. In each case, Rich’s clients rely on his extensive experience, analytical skills, and developed judgment as he keeps in mind their legal obligations, ethical requirements, and business objectives. Examples of his work in this area include:

  • Representing financial services clients in investigations involving matters such as stock options grants, market timing and late trading of mutual funds, auction rate securities, and share class sales practices.
  • Representing public and private companies in internal investigations involving allegations of discrimination, harassment, retaliation and/or other inappropriate conduct.
  • Representing clients responding to inquiries from governmental entities and/or self-regulatory organizations, such as the U.S. Attorney, the SEC, FINRA, State Attorneys General and local prosecutors.
Reputation and Experience

Rich is regularly recognized by Super Lawyers and with an AV Preeminent® rating by Martindale Hubbell®. While primarily engaged as a zealous client advocate, he is often retained as a mediator through the Commercial Division’s panel of neutrals in New York County or privately.

Rich is the host of the Law Brief® Podcast series, which covers current legal issues in the context of their impact on our businesses and lives. He has been published or quoted in numerous sources, including The New York Law Journal, The Wall Street Journal, and The Hollywood Reporter.

In addition, Rich is a member of the firm’s Diversity and Inclusion Committee and serves as an associate mentor.

Rich began his legal career and served as litigation counsel at Cahill Gordon & Reindel LLP and was a partner at Paul Hastings LLP and Satterlee Stephens LLP.

Community Involvement
  • Former President of the Hofstra University School of Law Alumni Association Board of Directors
Education
  • Hofstra University School of Law, J.D., 1990
  • Managing Editor of the Hofstra Law Review
  • The Ohio State University, B.A., 1987
Admissions
  • New York
  • U.S. Supreme Court
  • U.S. Court of Appeals for the Second Circuit
  • U.S. District Court for the Eastern District of New York
  • U.S. District Court for the Southern District of New York
Awards and Honors
  • New York Super Lawyers, 2014-2020
  • AV® Preeminet™ by Martindale Hubbell®
Community Involvement
  • Former President of the Hofstra University School of Law Alumni Association Board of Directors
Memberships
  • New York County Lawyer’s Association
  • Federal Bar Association
  • Federal Bar Council
Articles
  • “The Workforce Mobility Act: The Wrong Solution for Non-Compete Litigation,” The New York Law Journal (July 16, 2018)
  • “Restrictive Covenants: Looking Beyond the Criticism,” Law360 (June 13, 2017)
  • “Report on Proposed Amendments to the Federal Rules of Civil Procedure,” Co-Authored with other members of the New York County Lawyer’s Association (February 19, 2014)
  • “Defection at the Top: Lateral Partner Moves at the Executive or Director Level,” New York Law Journal (October 15, 2013)
  • “Restrictive Covenants in Employment Contracts Reviewed,” Society for Human Resource Management (September 15, 2010)
  • “Non-Authority for Non-Recruitment Covenants Under New York Law,” New York Law Journal (October 6, 2010)
  • “Director Independence and the Demand Requirement,” New York Law Journal (December 19, 2005)
  • “Is Rule 10(b)(5)’s Private Right of Action a ‘Super-Precedent’?,” New York Law Journal (December 5, 2005)
  • “Investigations of Mutual Fund Industry Still Gathering Steam,” New York Law Journal (March 8, 2004)
Speaking Engagements
  • Host, “Law Brief" Podcast (2019-Present)
  • Presenter, “Recovering Damages for Breach of Covenants Not to Compete or Solicit, Confidentiality and Fiduciary Duty." Strafford Webinars (October 2, 2019)
  • Instructor, Northeast Regional Basic Trial Skills, National Institute for Trial Advocacy (August 8-10, 2019)
  • Presenter, “Protecting Confidentiality and Trade Secrets and the Perils of Using Social Media," National Law Institute CLE Program (July 18, 2019)
  • Presenter, “Recovering Damages for Breach of Covenants Not to Compete or Solicit, Confidentiality and Fiduciary Duty." Strafford Webinars (October 4, 2018)
  • Presenter, “Securities Litigation: What You Need To Know About a Rising Tide and An Active Bench.” Lawline (October 14, 2017)
  • Presenter, “Proving Damages for Breach of Covenants Not to Compete or Solicit, Confidentiality and Fiduciary Duty.” Strafford Webinars (October 4, 2017)
  • Presenter, "Non-Compete Agreement Litigation Strategies," Strafford Webinars (August 15, 2017)
  • Presenter, “Restrictive Covenants and Non-Compete Agreements: Trends, Updates and Developments Explored,” The Knowledge Group (August 10, 2017)
  • Moderator, "Employee Mobility CLE," Hofstra University School of Law (October 22, 2014)
  • Presenter, "Negotiating Non-Compete Agreements," Institute for Strategic Negotiations (September 2013)

Quote I live by:
“Whenever you got business trouble the best thing to do is to get a lawyer. Then you got more trouble, but at least you got a lawyer.” Chico Marx (At the Circus)

News

Events

  • The Consolidated Appropriations Act, 2021: Important Paycheck Protection Program Provisions

    On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021 (the Act). The Act is wide-sweeping in its breadth at over 5,500 pages and provides the annual funding for the federal government.

    Importantly, for many small businesses, the Act contains several important rules providing further relief for those affected by the COVID-19 pandemic, including revisions to the Paycheck Protection Program (PPP). For purposes of this alert, we will highlight some of the PPP provisions we believe will be of interest to employers.

  • The Consolidated Appropriations Act, 2021: Tax-Related Changes

    On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021 (the Act). The Act, among many other things, expands the employee retention tax credit and includes favorable changes to other employer-related tax provisions.

  • SBA Issues Procedural Notice Regarding Changes of Ownership

    Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.
    On October 2, 2020, the SBA released a procedural notice (Notice) – available here – addressed to SBA employees and PPP lenders clarifying the required procedures for changes of ownership of an entity that has received PPP funds.

  • TIME SENSITIVE: New York State Publishes New Wage Notice Template for Immediate Use

    Just in the nick of time, the New York State Department of Labor (NYDOL) released the new wage notice template to be used for employers subject to Home Care Worker Wage Parity. Employers must begin using the new wage notice (labeled the LS 62) beginning today, October 1, 2020. The LS 62 is available on the NYDOL website, linked here.

  • COVID-19 Reopening Safety Plans and Updating Employee Policies

    The COVID-19 global pandemic has created additional health and safety considerations for employers, who as it is, already have a general duty to provide a safe working environment.

    As businesses and employers prioritize the health, safety, and well-being of their employees and workers, their families, and the wider community, through updating and maintaining their required written Reopening Safety Plans, they are also focusing on disseminating written COVID-19-related workplace policies.

  • ACT NOW. New Prevailing Wage Notification Requirements Are in Effect!

    Does your company perform “prevailing wage” work? If so, you now have additional obligations under New York’s Wage Theft Prevention Act (WTPA), which was amended by Governor Andrew Cuomo’s signing of the 2020-2021 state budget. Examples of prevailing wage work include non-union positions in construction or building service jobs.

  • Labor Law Amendments Mean New Wage Notices and Wage Statements for All Who Are Subject to Wage Parity

    While everyone’s attention was fixed on COVID-19 and the surrounding chaos, New York State Governor Andrew Cuomo signed the state budget for fiscal year 2020-2021, ushering in several new labor laws and amendments. Some of these such amendments concern the Home Health Care Worker Wage Parity Law (Wage Parity Law) and New York’s Wage Theft Prevention Act (WTPA).

  • Paycheck Protection Program Extended Through August 8, 2020

    Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

  • Federal Reserve Bank of Boston Announces Main Street Lending Program Is Fully Operational

    The Federal Reserve Bank of Boston announced the Main Street Lending Program is “now fully operational, ready to purchase participations in eligible loans that are submitted to the program by registered lenders.”

  • SBA Issues New Interim Final Rule for Paycheck Protection Program– Guidance Your Business Should be Aware Of

    Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

  • Internal Revenue Service Announces Relief for Qualified Opportunity Zone Investors

    On June 4, 2020, the Internal Revenue Service issued Notice 2020-39, which provides temporary relief to qualified opportunity funds (QOFs) and their investors as a result of the COVID-19 pandemic.

  • Federal Reserve Bank of Boston Modifies Main Street Lending Program

    The Federal Reserve Bank of Boston announced changes to the Main Street Lending Program (Program) to allow more small and medium-sized businesses to be able to participate in the Program. 

  • Federal Reserve Advances Towards Launching Main Street Lending Program

    The Federal Reserve recently announced that the Federal Reserve Bank of Boston has set up the special purpose vehicle (SPV) to purchase participations in loans originated by eligible lenders under the Main Street Lending Program (Program). In addition, Program loan participation agreement, form borrower and lender certifications, and other required form agreements are now available on the Federal Reserve Bank of Boston’s Main Street Lending Program Forms and Agreements website. The Federal Reserve also updated its Frequently Asked Questions (FAQs), dated May 27, 2020.

  • Amendment to CARES Act and PPP Loan Forgiveness

    On June 5, 2020, President Trump signed H.R. 7010 (the Bill), which the Senate had unanimously passed. The Bill amends several provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Paycheck Protection Program (PPP).

  • Alternative Loan Options For Certain Small Businesses, Non-Profits and Landlords in New York State

    For certain small businesses, non-profits and landlords who did not receive a Paycheck Protection Program loan or an Economic Injury Disaster Loan from the Small Business Administration, New York State is making available loans under the New York Forward Loan Fund (NYFLF). The NYFLF is a new economic recovery loan program aimed at supporting New York State’s small businesses, non-profits and landlords as they reopen after the COVID-19 outbreak and New York State on PAUSE.

  • Main Street Loans: How Much May a Company Borrow?

    Federal Reserve Chairman Jerome Powell announced on May 19, 2020, before a Senate Committee that the Main Street Lending Program (Program) is anticipated to be launched around the end of May. Prospective borrowers should be preparing for making loan applications with participating lenders when the Program commences.

  • SBA Releases Additional PPP Loan Review Guidance

    On May 22, 2020, the Small Business Administration (SBA), in consultation with the U.S. Department of Treasury, published an interim final rule (the Review Guidance) to supplement previous Paycheck Protection Program (PPP) loan forgiveness guidance. The Review Guidance is intended to establish the standards by which the SBA will investigate whether a loan met program requirements and the circumstances under which it will be released from liability on a guarantee for such a loan.

  • SBA Releases Additional PPP Loan Forgiveness Guidance

    On May 22, 2020, the Small Business Administration, in consultation with the U.S. Department of Treasury, published an interim final rule to supplement previous Paycheck Protection Program loan forgiveness guidance.

  • SBA Issues Additional Guidance on Good Faith Certification

    Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Small Business Administration (SBA) is tasked with administering the Paycheck Protection Program (PPP), the loan program intended to allow employers to continue to pay their employees and assist with certain other expenses resulting from the COVID-19 pandemic.

  • Second Circuit Enhances Enforcement of Arbitration Subpoenas in Federal Court

    The U.S. Court of Appeals for the Second Circuit (covering New York, Connecticut and Vermont) has issued an opinion that enhances the effectiveness of arbitration as an alternative to litigation. This ruling makes it easier to use the federal courts to enforce subpoenas issued by arbitration panels.

  • New York State Voting Leave Amended Again

    One year ago, voting leave in New York was expanded to provide three hours of paid voting leave to all employees, regardless of whether they had time outside of work to go to the polls. But this expanded leave was short-lived. As of April 3, 2020, Section 3-110 of the New York State Election Law detailing the time allowed for employees to vote has been amended to closely resemble its previous iteration. The amendments were announced as part of New York State Governor Andrew Cuomo's 2020-2021 state budget.

  • COVID-19 Update: Guidance and Forms

    Guidance and forms are now available for employers to use in documenting leave requests and complying with requirements under the new federal and state COVID-19 leave laws.

  • New York Paid Leave and Job Protection for COVID-19 Quarantine or Isolation Order

    On March 18, 2020, New York State adopted new legislation providing employees subject to the Coronavirus (COVID-19) quarantine or isolation order with immediate sick leave, disability benefits and paid family leave. These benefits apply to employees who cannot work (including an inability to work remotely).

  • Non-Essential Businesses Must Convert 75% of Workforce to Remote Working Arrangements by March 20

    New York State Governor Andrew Cuomo announced that his Executive Order 202.6 requiring non-essential businesses to keep 50% of their workforce offsite has been updated to increase that number to 75%. This means that if your business is deemed non-essential, you may only have 25% of your workforce working in the office or "onsite" starting Friday, March 20.

  • Richard Schoenstein Authors New York Law Journal Article on the Workforce Mobility Act: The Wrong Solution For Non-Compete Litigation

    Litigation partner Rich Schoenstein authored an article for the New York Law Journal’s special Litigation report titled, "The Workforce Mobility Act: The Wrong Solution For Non-Compete Litigation.”

  • Laurent Drogin, David Kleinmann and Rich Schoenstein Author Article on the Enforcement of New York Non-Compete Agreements

    Non-compete agreements generally are disfavored in New York, but courts will enforce them if they are reasonable in time, geographic scope and are intended to protect a company's "legitimate protectable interest(s)" as opposed to being simply anti-competitive. One question that has never been clearly answered is whether an employer's termination of an employee "without cause" will render a non-compete agreement unenforceable. In this article, Labor & Employment Chair Laurent Drogin and partner David Kleinmann, who are the co-chairs of the firm’s Restrictive Covenant practice, and Litigation partner Rich Schoenstein explore a significant decision handed down by the appellate court covering Manhattan and the Bronx impacting the enforcement of restrictive covenants.

  • Richard Schoenstein and David Kleinmann Author Law360 Article on How Restrictive Covenants Can Be Used With Balance

    Business and Employment Litigation partner Richard Schoenstein and Labor partner and Restrictive Covenant practice co-chair David Kleinmann published an article, “Restrictive Covenants: Looking Beyond the Criticism,” for Law360.

  • Game-Changer on Enforcement of New York Non-Compete Agreements

    In a recent decision in Buchanan Capital Markets LLC v. DeLucca, an appellate court in Manhattan placed the enforceability of non-compete agreements in jeopardy for New York employers.

Education
  • Hofstra University School of Law, J.D., 1990
  • Managing Editor of the Hofstra Law Review
  • The Ohio State University, B.A., 1987
Admissions
  • New York
  • U.S. Supreme Court
  • U.S. Court of Appeals for the Second Circuit
  • U.S. District Court for the Eastern District of New York
  • U.S. District Court for the Southern District of New York
Awards and Honors
  • New York Super Lawyers, 2014-2020
  • AV® Preeminet™ by Martindale Hubbell®
Memberships
  • New York County Lawyer’s Association
  • Federal Bar Association
  • Federal Bar Council
Articles
  • “The Workforce Mobility Act: The Wrong Solution for Non-Compete Litigation,” The New York Law Journal (July 16, 2018)
  • “Restrictive Covenants: Looking Beyond the Criticism,” Law360 (June 13, 2017)
  • “Report on Proposed Amendments to the Federal Rules of Civil Procedure,” Co-Authored with other members of the New York County Lawyer’s Association (February 19, 2014)
  • “Defection at the Top: Lateral Partner Moves at the Executive or Director Level,” New York Law Journal (October 15, 2013)
  • “Restrictive Covenants in Employment Contracts Reviewed,” Society for Human Resource Management (September 15, 2010)
  • “Non-Authority for Non-Recruitment Covenants Under New York Law,” New York Law Journal (October 6, 2010)
  • “Director Independence and the Demand Requirement,” New York Law Journal (December 19, 2005)
  • “Is Rule 10(b)(5)’s Private Right of Action a ‘Super-Precedent’?,” New York Law Journal (December 5, 2005)
  • “Investigations of Mutual Fund Industry Still Gathering Steam,” New York Law Journal (March 8, 2004)
Speaking Engagements
  • Host, “Law Brief" Podcast (2019-Present)
  • Presenter, “Recovering Damages for Breach of Covenants Not to Compete or Solicit, Confidentiality and Fiduciary Duty." Strafford Webinars (October 2, 2019)
  • Instructor, Northeast Regional Basic Trial Skills, National Institute for Trial Advocacy (August 8-10, 2019)
  • Presenter, “Protecting Confidentiality and Trade Secrets and the Perils of Using Social Media," National Law Institute CLE Program (July 18, 2019)
  • Presenter, “Recovering Damages for Breach of Covenants Not to Compete or Solicit, Confidentiality and Fiduciary Duty." Strafford Webinars (October 4, 2018)
  • Presenter, “Securities Litigation: What You Need To Know About a Rising Tide and An Active Bench.” Lawline (October 14, 2017)
  • Presenter, “Proving Damages for Breach of Covenants Not to Compete or Solicit, Confidentiality and Fiduciary Duty.” Strafford Webinars (October 4, 2017)
  • Presenter, "Non-Compete Agreement Litigation Strategies," Strafford Webinars (August 15, 2017)
  • Presenter, “Restrictive Covenants and Non-Compete Agreements: Trends, Updates and Developments Explored,” The Knowledge Group (August 10, 2017)
  • Moderator, "Employee Mobility CLE," Hofstra University School of Law (October 22, 2014)
  • Presenter, "Negotiating Non-Compete Agreements," Institute for Strategic Negotiations (September 2013)

Richard Schoenstein

Privacy Policy

We have updated our privacy policy. Click here to view.

I agree