Securities Litigation

In an increasingly global securities landscape, understanding the complex nuances of securities litigation and how claims are resolved is vital. Waging a strong defense in such cases demands a thorough knowledge of the substantive and applicable procedural laws, as well as an excellent ability to resolve disputes, before or at trial.

Sullivan & Worcester has extensive jury and non-jury trial experience and frequently appear before regulators including FINRA, SEC and state securities regulators. Our litigators work closely with lawyers in the firm’s other practice areas, including corporate, securities, corporate governance and white-collar defense to develop winning strategies for a wide range of securities cases – such as high-stakes shareholder lawsuits, federal and state enforcement actions, internal investigations and arbitrations, including representations in multi-district litigation proceedings and cross-border commercial disputes.

Recent highlights have underlined our legal counsel for clients involved in stock manipulation lawsuits, stock option backdating litigation, disputes over the purchase or sale of stock, bonds and other securities, fraud and securities class actions – such as those where we defended clients in lawsuits brought by investors of foreign funds involved in the Madoff Ponzi scheme.

  • Defended our client in two class action suits brought by investors of foreign funds involved in the Madoff Ponzi scheme, filed a joint motion to dismiss arguing that the suit should be dismissed for inconvenient forum. U.S. District Judge Richard M. Berman agreed dismissing the plaintiffs’ complaints
  • Represented independent trustees and mutual funds in various disputes with their advisors and/or third-party service providers. These matters are generally highly confidential, complex disputes requiring detailed factual analyses and involving arcane issues arising under both the Investment Company Act of 1940, as amended, as well as common law duties
  • Obtained dismissal of stock manipulation lawsuit brought against Credit Suisse by hedge funds (S.D.N.Y., 2d Cir., Wash. State Court)
  • Representation of an officer in stock-option backdating litigation in connection with federal securities fraud claims, derivative claims and SEC investigation (N.D. Cal.)
  • Obtained dismissal in the Southern District of New York, and affirmance in the United States Court of Appeals for the Second Circuit, of securities class action claims in excess of $20 million against corporate officers of an internet technology company arising from the alleged sale of unregistered securities
  • Precluded a securities class action plaintiff from enjoining a merger of public companies
  • Representation of largest victim investor who uncovered fraud in WexTrust securities receivership arising from $255 million Ponzi scheme
  • Internal investigation of major financial institution in response to allegations of $60 million fraud on investors
  • Represented underwriters in securities class action brought in connection with IPO of a subprime lender
  • Represented institutional investment manager in defense of class actions involving “excessive fee” allegations
  • Defended a Canadian engineering company in a federal securities class action in Texas arising from the Bre-x gold scandal
  • Represented independent trustees and third-party mutual fund service providers in various SEC and state securities enforcement actions and related private securities litigation
  • Defended majority shareholders and partners, closely held corporations and partnership entities against derivative and breach of fiduciary duty, including freeze out claims
  • Represented a national insurance and financial services company in numerous litigations, workouts and negotiated resolutions of securities, fiduciary and other claims arising out of three mezzanine funds
  • Represented major public and private employee pension funds in disputes related to the purchases of stock, bonds and convertible securities by public and private issuers
  • Represented a consortium of Swiss private banks in the recovery of multi-million dollar investments in convertible bonds issued by a U.S. medical technology company
  • Represented an institutional investor in civil and criminal proceedings to recover losses from a rogue employee’s off-market trading of more than $9 billion in securities
  • Obtained the dismissal of a complaint brought by a group of investors alleging securities fraud against DeHeng Law Offices of Beijing, one of China’s largest law firms, Pope Investments II, LLC v. DeHeng Law Firm, No. 13-3250-cv (2d Cir. Sept. 18, 2014)