The plaintiffs, the Republic of Kazakhstan ("Kazakhstan") and Outrider Management, L.L.C. ("Outrider"), brought this action in the New York State Supreme Court against the defendants, Daniel Chapman, Argentem Creek Holdings LLC ("Holdings"), Argentem Creek Partners LP ("Partners"), Pathfinder Argentem Creek GP LLC ("Pathfinder"), and ACP I Trading LLC ("ACP"). ECF No. 1-1. The plaintiffs alleged that the defendants committed frauds that resulted in Kazakhstan's being forced to arbitrate a meritless action, and in Outrider's entering into an agreement that was ultimately to its detriment. Id. The defendants removed the case to this Court on the grounds that the Federal Arbitration Act provided for removal. ECF No. 1
Three motions are now before the Court: the defendants' motion to dismiss Kazakhstan's claims, ECF No. 53; the defendants' motion to compel arbitration of and dismiss Outrider's claims, ECF No. 57; and the plaintiffs' motion to remand the action to the New York State Supreme Court, ECF No. 61. For the following reasons, the plaintiffs' motion to remand is granted as to the claims by Kazakhstan and denied as to the claims by Outrider. The defendants' motion to dismiss Kazakhstan's claims is denied without prejudice. The defendants' motion to compel arbitration of and dismiss Outrider's claims is granted insofar as it seeks to compel arbitration of Outrider's claims, and denied insofar as it seeks to dismiss them.