We are committed to the representation of plaintiffs in securities and consumer fraud litigation. The Firm files these cases as class actions, meaning that the selected representatives of a group of similarly-situated persons assert claims against corporations to recover damages for the class as a whole. Aggregating the claims of many injured individuals in a class action makes particular sense where the harm to any one person is insufficient to justify extremely costly litigation against a well-funded defendant.
In this type of litigation, shareholders can assert claims against officers and directors of a company for violating their fiduciary duties in connection with corporate transactions. In such circumstances, the goals of the litigation can be to increase the deal price, compel the public disclosure of important facts to assist investors in deciding whether to approve the deal, and/or to improve deal terms to ensure fairness and eliminate coercion.
In federal securities fraud class action litigation, investors injured because of wrongful conduct, including the dissemination of fraudulent statements to the investing public, can sue to recover the difference between the fraudulently inflated price of their shares and its true market value. In addition to recouping investor losses, securities fraud litigation also can produce significant corporate governance reforms designed to deter and reduce repeated misconduct.
A derivative lawsuit is brought by a shareholder of a corporation on the corporation’s behalf. Such cases usually involve claims of mismanagement, waste of corporate assets, or self-dealing, and often involve claims against the officers or directors of the corporation. Shareholder derivative litigation often is necessary because the corporation, which is run by officers and directors, cannot bring suit against one of its own, even if serious wrongdoing has occurred. Any benefit from a derivative suit goes directly to the company, which could positively affect the company’s share price, thereby benefiting all of its current shareholders.