dcsimg Securities Class Action

Securities Class Action

The past decade has seen a significant increase in public awareness and governmental scrutiny of the financial practices of publicly held companies. At best, the threat of high-profile securities class actions and other litigation can have a chilling effect on business growth; at worst, administrative actions, lawsuits and criminal proceedings can result in the downfall of an entire company.

The securities class action team at McGuireWoods represents clients in jurisdictions across the United States. We advise publicly traded and closely held corporations, officers and directors of these businesses, and their outside advisors and service providers such as accounting firms, hedge funds and investment banking firms. We regularly represent clients before federal and state courts and the Judicial Panel for Multidistrict Litigation in matters involving multimillion-dollar claims. For example, we recently advised a petroleum corporation in a $100,000,000 securities class action alleging violations of the Securities Exchange Act of 1934 and state fiduciary duty law; our motion to dismiss the federal case was granted, as were the state law claims.

We also explore alternative resolution options, including mediation, arbitration, early neutral evaluation, summary jury trials and settlement conferences when such strategies can help clients achieve their objectives, reduce costs and administrative burdens, and offer creative solutions not typically offered through the courts. McGuireWoods is a member of the Center for Public Resources, a non-profit alliance of corporations, law firms and academics dedicated to promoting efficient alternatives to litigation. Our practice also includes partners who teach alternative dispute resolution methods at law schools and who have authored textbooks on the subject.

Securities class actions and shareholder derivative suits often involve criminal and civil proceedings that run parallel to the core litigation. We work closely with the firm’s white-collar criminal defense team and related practices to defend clients in grand jury investigations and criminal matters pursued by the U.S. Department of Justice and arising out of SEC enforcement activity. As counselors, we draw on our knowledge of SEC and law-enforcement priorities to help clients structure new products, activities and sales practices to help ensure compliance with existing and emerging regulations.

We represent clients in the full range of shareholder derivative suits and securities class actions, including serving as counsel to director and officer defendants, accounting defendants and broker-dealer defendants.

CONTACTS

Jacks C. Nickens Partner T: +1 713 353 6668
Andrew J. Trask Counsel T: +44 20 7632 1600
Results 1-20 of 29
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RESULTS DEPEND ON A VARIETY OF FACTORS UNIQUE TO EACH CASE. PRIOR RESULTS DO NOT GUARANTEE OR PREDICT A SIMILAR OUTCOME.

Representative Matter

Petroleum corporation

Representation of petroleum corporation in $100 million securities class action suit alleging violations of Sections 14(a) and 20 (a) of the Securities Exchange Act of 1934 and Maryland fiduciary duty law. Motion to dismiss granted.
Representative Matter

Financial services company, including directors and officers

Representation of financial services company, its officers and directors in multiple securities and breach of fiduciary duty class actions invoking multiple state laws, and related class actions brought by the founder and former chief executive officer.
Representative Matter

Bank

Representation of bank in 10(b)5 securities class action arising out of alleged misrepresentations of loan loss reserves. Effectively negotiated classwide settlement. (M.D. Fla.)
Representative Matter

Bank

Representation of bank in 150-plaintiff class action alleging securities fraud and  RICO violations arising out of alleged Ponzi scheme. Effectively negotiated classwide settlement.
Representative Matter

Computer networking company

Representation of computer networking company in four consolidated 10(b)5 class actions alleging misrepresentations in financial statements, press releases and public filings that resulted in restatement of earnings. Effectively negotiated classwide settlement.
Representative Matter

A group of underwriters

Representation of a group of underwriters in an action pending in federal court that alleges violations by the underwriters of Sections 11 and 12 of the Securities Act of 1933 and violations by the issuer and others of both the 1933 Act and the Securities Exchange Act of 1934.
Representative Matter

Multinational industrial conglomerate

Representation of a multinational industrial conglomerate in more than 40 purported securities class actions in the aftermath of a high-level corporate scandal. The multidistrict litigation involved collection and production of more than 80 million pages of documents and 250 fact and expert depositions. Following settlement of the class actions, the firm effectively defended several consolidated opt-out cases seeking more than a billion dollars from the company. These actions were favorably settled after motion to dismiss briefing was concluded.
Case Study

Shareholder derivative claims against Telos Corporation dismissed with prejudice

The Circuit Court for Baltimore City, Md., dismissed with prejudice the shareholder derivative claims brought against Telos Corporation by activist hedge fund Costa Brava Partnership III, L.P., based on the report and conclusions of the Telos Special Litigation Committee. In 2005, activist hedge fund Costa Brava filed suit against the defense contractor, claiming it was owed at least $79 million in accrued and unpaid dividends and redemption payments on preferred stock. The
Representative Matter

Bank directors

Representation of directors of bank in class action alleging claims related to "going private" merger. Court denied certification, upheld on appeal, and partially upheld by United States Supreme Court. On remand, effectively negotiated classwide settlement.
Representative Matter

Big Four accounting firm

Representation of a partner of a Big Four accounting firm in connection with an SEC investigation, by convincing the SEC staff to end its investigation without taking disciplinary action after the receipt of a Wells Notice.
Representative Matter

Big Four accounting firm

Representation of a Big Four accounting firm in credit crisis-related federal and state civil and regulatory matters in connection with the firm's audits and reviews of one of the largest financial institutions in the United States.
Representative Matter

Big Four accounting firm

Ongoing representation of a Big Four accounting firm in various regulatory matters, including matters before the SEC.
Representative Matter

Big Four accounting firm

Representation of the predecessor of a Big Four accounting firm in an employee defalcation case.
Representative Matter

Big Four accounting firm

Representation of the predecessor of a Big Four accounting firm in the resolution of a tax malpractice claim regarding inventory issues.
Representative Matter

Big Four accounting firm

Represented the predecessor of a Big Four accounting firm in connection with its audits and review of a bankrupt worker's compensation insurance holding company in a securities class action case, and in a related state court case by insurance commissioner.
Representative Matter

Broker-dealer

Representation of broker-dealer in class actions in alleging violations of the Securities Exchange Act of 1934, Rule 10(b)5, and state securities laws, as well as common law fraud and violation of the Florida Deceptive and Unfair Trade Practices Act relating undisclosed markups and markdowns.
Representative Matter

Broker-dealer

Representation of broker-dealer in class action alleging breach of fiduciary duty, breach of contract, and violations of the Florida Deceptive and Unfair Practices Act stemming from "order flow payments" practices in securities industry.
Representative Matter

Broker-dealer

Representation of broker-dealer in a class action alleging intentional misrepresentation, breach of fiduciary duty, constructive fraud, violations of certain California statutory provisions, and negligence.
Representative Matter

Broker-dealer and registered representatives and officers

Representation of broker-dealer and several individual registered representatives and officers in class actions alleging violations of state securities laws and common law negligence relating to the sale of the securities of a corporation specializing in equipment lease financing. Motions to dismiss granted in all three states.
Representative Matter

Directors of a Virginia bank

Representation of directors of a Virginia bank against class action alleging breach of fiduciary duty and violations of federal securities laws involving the bank's "going private" merger.
Results 1-20 of 29
E. Osborne Ayscue Jr. E. Osborne Ayscue Jr.
Counsel
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2058
F: +1 704 343 2300
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Jeffrey J Chapman Jeffrey J. Chapman
Partner
1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106

T: +1 212 548 7060
F: +1 212 715 6277
vCard
Richard Cullen Richard Cullen
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 1009
F: +1 804 698 2035
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Elizabeth Edwards Elizabeth F. Edwards
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 4390
F: +1 804 698 2045
vCard
Jeremy D Freeman Jeremy D. Freeman
Partner
1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106

T: +1 212 548 7008
F: +1 212 715 6269
vCard
James C Freije James C. Freije
Attorney
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 1702
F: +1 202 828 3314
vCard
Louis Greenstein Louis D. Greenstein
Partner
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 2415
F: +1 202 828 3310
vCard
Susan E Groh Susan E. Groh
Associate
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 849 8184
F: +1 312 698 4594
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Wen Hutchinson Wen Hutchinson
Partner
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2008
F: +1 704 353 6219
vCard
Mark W Kinghorn Mark W. Kinghorn
Partner
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2102
F: +1 704 444 8855
vCard
Nicholas B. Lewis Nicholas B. Lewis
Associate
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 1771
F: +1 202 828 3306
vCard
Anne Bentley McCray
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 1037
F: +1 804 698 2087
vCard
Jessica E Morrison Jessica E. Morrison
Partner
7 Saint Paul Street
Suite 1000
Baltimore, MD 21202-1671

2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 410 659 4425
F: +1 410 659 4483
vCard

T:+1 202 857 1705

Jacks C Nickens Jacks C. Nickens
Partner
JPMorgan Chase Tower
600 Travis Street
Suite 7500
Houston, TX 77002-2906

T: +1 713 353 6668
F: +1 832 214 9931
vCard
Robert Plotkin Robert Plotkin
Partner
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106

T: +1 202 857 1750
F: +1 202 828 2970
vCard

T:+1 212 548 7098
F: +1 212 548 2150

Brian E Pumphrey Brian E. Pumphrey
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 7745
F: +1 804 698 2018
vCard
Ed Rosenblatt Edward G. Rosenblatt
Senior Counsel
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2341
F: +1 704 373 8837
vCard
James A Sherman James A. Sherman
Attorney
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 828 2889
F: +1 202 828 2972
vCard
Darren William Stanhouse Darren William Stanhouse
Associate
434 Fayetteville Street
Suite 2600
Raleigh, NC 27601

T: +1 919 755 6667
F: +1 919 755 6618
vCard
Samantha E Thompson Samantha E. Thompson
Attorney
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 828 2830
F: +1 202 857 1737
vCard
Andrew Trask Andrew J. Trask
Counsel
11 Pilgrim Street
London EC4V 6RN
United Kingdom

T: +44 20 7632 1600
F: +44 20 7632 1638
vCard
Cristin K Traylor Cristin K. Traylor
Counsel
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 4354
F: +1 804 698 2216
vCard
Walter H White Jr. Walter H. White Jr.
Partner
11 Pilgrim Street
London EC4V 6RN
United Kingdom

2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +44 20 7632 1630
F: +44 20 7632 1638
vCard

T:+1 202 857 1707
F: +1 202 828 2969