Fishman Haygood Prevails on Standing Issue in the USCA for the Fifth Circuit
September 5, 2019
Fishman Haygood prevailed on a securities law issue of first impression before the United States Court of Appeals for the Fifth Circuit. Citing the Delaware Supreme Court, the Fifth Circuit overturned the district court’s ruling that Louisiana investors in Delaware hedge funds lacked standing to bring securities fraud claims against their former investment advisers under Louisiana law because Delaware law would require the investors to join the fund in a derivative action. Jason Burge argued the appeal for the firm’s clients, including the Firefighters Retirement System and the Municipal Employees Retirement System of Louisiana. Read the opinion here.
In the underlying case, the firm represents a number of investors and pension funds in a lawsuit brought against Walter Morales, Commonwealth Advisors, Stifel Financial, Stifel Nicolaus, and Stone & Youngberg in the United States District Court for the Middle District of Louisiana. After the district court’s erroneous dismissal, Plaintiffs settled their claims against Stifel and Stone & Youngberg for over $21 million. The Fifth Circuit’s ruling revives Plaintiffs’ remaining claims against Commonwealth and Walter Morales.
Fishman Haygood regularly represents investors in securities who have lost money on misrepresented or fraudulent investments, as well as issuers of securities who have been misadvised to issue manipulated or fraudulent products, such as auction rate securities.