In a victory for Paul, Weiss client Deutsche Investment Management Americas Inc. (DIMA) on November 3, the New York Supreme Court, Appellate Division, First Department dismissed fraud claims brought by Aozora, a Japanese bank, against it and UBS related to Aozora's $31 million investment in a CDO in 2006 and 2007. Aozora sued the banks in 2013, alleging that DIMA improperly allowed UBS to usurp its role as collateral manager, and that UBS loaded up the CDO with overly risky, allegedly "built-to-fail" mortgage-related collateral, including products from UBS's own inventory and CDOs allegedly shorted by the hedge fund Magnetar Capital. DIMA and UBS moved to dismiss the claims on numerous grounds, arguing that they were time-barred by both the New York and Japanese statutes of limitation because Aozora's substantial investment losses, multiple downgrades to the CDO and extensive publicly available information should have put it on notice more than two years before it brought suit. The trial court dismissed Aozora's non-fraud claims, but held that Aozora's fraud claims were timely under New York's two-year discovery rule, reasoning that the information defendants had identified was insufficient to put Aozora on notice. The defendants appealed the trial court's decision, and on November 3, following oral argument, the First Department reversed the trial court's decision. The Court held that Aozora's fraud claims are time-barred because publicly available information put Aozora on notice more than two years before it brought suit.