Securities fraud has presented a serious risk to institutional and individual investors for decades. Despite legislative attempts to choke off the practice and bring transparency and honesty to financial markets, the practice remains as prevalent as ever today — perhaps more so.
Robbins Geller is among a handful of elite law firms with the resources, expertise and tenacity to pursue complex securities fraud litigation and uphold shareholder rights. The Firm has an impressive track record of success in high-profile cases, including the largest aggregate class action settlement in U.S. history. Here’s why Robbins Geller’s securities fraud practice is a force to be reckoned with.
What is securities fraud?
According to the FBI, securities fraud is defined as “a wide range of illegal activities, all of which involve the deception of investors or the manipulation of financial markets.” The practice occurs countless times per year, with only a small percentage of cases deemed newsworthy — despite the fact that even lower-profile cases can result in multimillion dollar losses, upend livelihoods and throw investment portfolios into chaos. Common manifestations of securities fraud include:
- Ponzi and pyramid schemes
- Options backdating
- Insider trading
- Fraudulent, incomplete or unorthodox accounting practices designed to deceive investors, board members and other stakeholders
- Advance fee schemes
- Foreign currency fraud
How Robbins Geller pursues securities fraud litigation
Robbins Geller’s securities fraud team is second to none. To date, the Firm has pursued thousands of separate securities fraud actions and represented more institutional clients, including pension funds and financial institutions, than any other law firm currently operating in the United States.
Robbins Geller’s prolific securities fraud caseload speaks to its systematic yet aggressive approach to every legal action in which it’s involved, regardless of the circumstances. The Firm employs dozens of former state and federal prosecutors, bringing a tremendous wealth of knowledge to bear for its clients. Additionally, the Firm’s securities fraud attorneys are familiar with judges in key jurisdictions and at every court level, removing logistical and operational barriers to casework. Finally, and perhaps most notably, Robbins Geller maintains an in-house team of trained financial investigators, forensic accountants, damage analysts and economists, allowing it to quickly assess the merits and particulars of a case and better serve its clients.
Notable cases and outcomes
Robbins Geller’s attorneys have been involved in a number of noteworthy securities actions, including:
- Jaffe v. Household Int’l, Inc., No. 02-C-05893 (N.D. Ill.). A nearly $2.5 billion judgment for the plaintiff in the aftermath of a securities fraud class action trial, one of only a handful of class action securities fraud suits to reach the verdict phase since the enactment of the PSLRA in 1995.
- Luther v. Countrywide Fin. Corp., No. 12-cv-05125 (C.D. Cal.). A $500 million settlement in an action against Countrywide Financial Corporation. This case represented the first action that arose out of the aftermath of the most recent financial crisis and set an important customary precedent for future actions.
- In re Enron Corp. Sec. Litig., No. H-01-3624 (S.D. Tex.). The largest class action settlement in history — $7.3 billion total. Robbins Geller represented The Regents of University of California against numerous defendants, including the named party.
Toward a more transparent future
Well-publicized shocks to the financial system tend to spur well-meaning attends at reform. Bipartisan Congressional majorities passed the Sarbanes-Oxley Act in the wake of the Enron debacle and the Dodd-Frank Act after the financial meltdown of the late 2000s. Unfortunately, these solutions, while welcome, often fail to achieve the sweeping change that they promise.
It’s up to the forceful shareholder advocates at firms like Robbins Geller to push for transparency and honesty among publicly traded firms — and to be prepared for a fight when their clients’ rights are at risk.