Securities and Governance Litigation

We defend securities class actions and shareholder derivative actions against public companies of all sizes, from microcaps to Fortune 10 companies. We give each company a bespoke defense by scaling our staffing and tailoring our strategy to fit the company’s goals and resources. We pride ourselves on our ability to defend each and every case both efficiently and effectively.

We have defended all types of allegations against companies across all industries. We have defended securities class actions and shareholder derivative matters, including shareholder demands on boards of directors, related to alleged false earnings forecasts, earnings guidance, Food and Drug Administration approval, financial-statement restatements and other accounting issues, loan loss reserves, internal controls, inventory valuation, tax accounting, related party transactions, financial and business metrics, antitrust compliance, misuse of corporate assets, product rollouts, product defects, proxy statement issues, improper personal use of corporate aircraft, merger integration problems, and earnings guidance.

Here are some of our highlights:

• Defended a diversified public company and its directors and officers in a securities class action and related shareholder derivative litigation arising out of a short-seller report. After we filed a motion to dismiss, the securities and derivative litigation plaintiffs agreed to voluntarily dismiss the litigation without prejudice.
• Defended a specialty retailer and its directors and officers in a securities class action and related shareholder derivative litigation alleging false financial forecasts and insider trading. We obtained a dismissal of the securities case with prejudice on the first motion to dismiss and a voluntary dismissal of the derivative litigation.
• Defended a beverage company and its officers and directors in a securities class action alleging false statements in the company’s registration statements and prospectuses for its initial public offering and secondary public offering, as well as in quarterly SEC filings, press releases and conference calls. Obtained a dismissal with prejudice on the first motion to dismiss.
• Defended a technology company and its officers in a securities class action and shareholder derivative litigation arising out of a short-seller report, alleging a five-year class period. While our motion to dismiss was pending, we reached settlements totaling less than $1 million.
• Defended a beverage company in a securities class action and shareholder derivative litigation alleging false statements and insider trading in connection with a failed product rollout. We obtained a dismissal with prejudice of the securities class action and voluntary dismissal of the derivative litigation.
• Defended an internet commerce company in a securities class action and shareholder derivative litigation in connection with alleged false earnings guidance. We achieved a dismissal of the securities class action and voluntary dismissal of shareholder derivative litigation.
• Defended an independent director of a real estate investment trust in a securities class action and large opt-out litigation related to a significant restatement. After we filed a motion to dismiss, the plaintiffs agreed to voluntarily dismiss our client from the litigation.
• Defended a manufacturer of cellular phone equipment in a securities class action arising out of a revenue recognition restatement. We obtained a dismissal with prejudice.
• Defended a retailer and its board of directors in several shareholder litigation matters based on a large accounting restatement. We obtained dismissals of all proceedings.
• Defended a Chinese company and its Chief Financial Officer and independent directors in a securities class action and shareholder derivative litigation alleging false accounting and failure of oversight based on the former Chief Executive Officer’s theft of corporate assets. Obtained dismissal of the CFO and independent directors from the securities class action and most of the shareholder derivative claims. Following significant discovery, obtained settlements that, combined with defense costs, totaled less than half the available insurance.