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Securities
We regularly represent both plaintiffs and defendants in securities litigation and arbitration, including broker-dealer disputes and public company disclosure litigation. Recent examples include:
Adams v. Securities America and David McFadden. Obtained an award of $22 million, one of the largest awards ever made in an NASD arbitration, on behalf of 32 Exxon Mobile retirees. This victory was covered extensively by the media including the Wall Street Journal, Reuters News Agency, the Associated Press, The Baton Rouge Advocate and others.
In re Merrill Lynch & Co., Inc. Auction Rate Securities Marketing Litigation. Representing the Louisiana Stadium and Exposition District (“LSED”) and the State of Louisiana against Financial Guaranty Insurance Corporation and Merrill Lynch, Pierce, Fenner & Smith, Inc. in connection with claims for losses relating to approximately $240 million in auction rate securities issued by the LSED. Specifically, the LSED and the State have asserted claims for losses suffered as a result of the collapse of FGIC’s credit rating, which rendered worthless the credit enhancement and bond insurance policy for which the LSED paid approximately $13 million; Merrill Lynch’s misrepresentations and omissions in connection with the structuring and issuance of the bonds; and Merrill Lynch’s improper conduct in the auctions for the bonds. The damages at issue in the case are in the tens of millions of dollars.
JP Morgan Securities, Inc. et al. v. Louisiana Citizens Property Insurance Corp. Representing Louisiana Citizens Property Insurance Corporation (“Citizens”) against JP Morgan Securities, Inc. and Bear Stearns & Co., Inc. in connection with claims for losses relating to approximately $300 million in auction rate securities issued by Citizens. Specifically, Citizens has asserted claims for losses suffered as a result of JP Morgan’s and Bear Stearns’ misrepresentations and omissions in connection with the structuring and issuance of the bonds; and JP Morgan’s and Bear Stearns’ improper conduct in the auctions for the bonds. The damages at issue in the case are in the tens of millions of dollars.
Unger v. Amedisys, Inc. Defended Amedisys, Inc. against a securities class action suit brought by shareholders alleging that the company willfully manipulated its computer software to artificially inflate its earnings and enhance its stock price. After the district court certified the class, the Fifth Circuit Court of Appeals reversed and created a new rule regarding the burden of proof for market efficiency at the class certification stage. See Unger v. Amedisys, Inc., 401 F.3d 316 (5th Cir. 2005).
Romero v. US Unwired, Inc. et al. Defending US Unwired, Inc. (now part of Sprint PCS) against a class action suit brought by shareholders alleging securities fraud. The plaintiffs claim that the officers and directors of US Unwired failed to disclose their true opinions on the merits of plans and unfavorable trends that they presaged and, instead, misrepresented that management was “a proponent” of such plans and trends. The plaintiffs seek over $100 million in damages. Fishman Haygood obtained a dismissal of the case by way of a motion to dismiss, but that ruling was reversed, in part, by the Fifth Circuit Court of Appeals. See Lormand v. US Unwired, Inc., 565 F.3d 228 (5th Cir. 2009). Since that appeal, the parties have reached a tentative settlement.
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