Class Actions & Derivative Suits

• Handled a matter involving an SEC receiver and eight foreign banks and the cash custodian for a private equity fund which raised over $1 billion through a series of debt offerings through offshore special purpose entities, then looted the funds through multiple means. The matter was resolved with a high eight figure settlement.
• Handled a matter involving 11 broker-dealers in a national class action seeking to compel the payment of interest on free credit balances and to enjoin account transfer practices that have been approved by the SEC, alleging that class damages exceeded $1 billion.
• Mediated corporate governance and stockholder action against lender advancing employee wages involving inspection of books and records, derivative claims for truth in lending violations and financial irregularities, redemption of stock and damages related to unallocated stock options.
• Handled a matter arising from the operation of a commercial loan underwriting, servicing and funding company involved in a Ponzi scheme fraud in the magnitude of hundreds of millions of dollars, related to piercing a sham trust and recover million in damages from several co-conspirators involved in real estate projects, including claims of breach of fiduciary duty, fraud, negligent misrepresentation, conversion and conspiracy.
• Handled a class action, SEC Receiver and individual investor matter involving a customer of a securities broker that was involved in a $50 million charitable gift annuity fraud scheme. The customer/promoter transferred donated stocks and bonds into a brokerage account to liquidate them and rapidly transfer the funds out to other financial institutions. The promoter told the victims that the broker was managing their money, when it was not.
• Handled a matter involving a large investor alleging securities fraud and negligent misrepresentation by a Los Angeles Koreatown bank and its officers and directors relating to alleged misleading financial statements and financial disclosures.
• Mediated a derivative claim dispute among the owners, officers and directors of a closely held corporation, resulting in competing breach of fiduciary and derivative claims seeking removal of directors and damages arising from alleged usurpation of corporate business opportunities, and alleged wrongful salaries, bonuses, and extravagant expenses.
• Handled related matters involving two broker-dealers, officers and directors, investors and a law firm arising from asset-backed promissory notes related to pools of ATMs that were to have been placed in bankruptcy proof special purpose entities, generating streams of income from swipe fees to pay the debt, which were eventually looted causing $30 million in losses.
• Handled a matter where a mezzanine lender brought a real estate finance enforcement action against a real estate land developer and its managing members for breach of contract on loans and guaranties, as well as tort claims, and the developers counterclaimed alleging lender liability and oral agreements extending and modifying the loans.
• Mediated a minority shareholder action against controlling shareholder in an Indian Ocean resort, alleging breach of fiduciary duty and related claims based on disappointing financial results, which the controlling shareholder argued were based on external factors.
• Handled related matters in which a money transmitter was alleged to have engaged in aiding and abetting money laundering relating to cross border money transfers between persons in the U.S. and persons in several states in northern Mexico.
• Handled a matter where investors alleged fraud and racketeering against a savings and loan association relating to alleged loan origination fraud involving securitized mobile home loans.
• Handled a matter involving a securities broker which had promoted an Irish pharmaceutical company to its customers which suffered a major drop in stock price when several clinical trials produced unfavorable results.
• Mediated investment related breach of contract and concealment claim arising from purchase of a manufacturing facility in San Jose with alleged non-disclosure and concealment of status of certain large Asian customers and failure to disclose prior conviction of the seller.
• Handled a matter between a brokerage house and a customer and her financial adviser involving trading by the financial adviser in stock index options with the customer alleging churning and unsuitable investments and seeking $5 million in damages.
• Handled a class action and other related actions involving an AmLaw 100 firm brought by investors who purchased real estate investment products from a real estate developer and promoter, alleging legal malpractice, securities fraud, aiding and abetting breach of fiduciary duty and negligent misrepresentation. Total investors losses exceeded $900 million.
• Handled a matter between a class of investors and a national accounting firm arising from the bankruptcy of a major homebuilder, alleging errors in accounting for net realizable value write-offs and deferred tax asset estimates among other issues. Plaintiffs sought $95 million in damages.
• Handled a bondholder class action securities matter involving an electric utility and the indenture trustee of certain first mortgage bonds arising out of the redemption of certain bonds at par value which the bondholders claimed should have been redeemed at a premium.
• Handled several related claims in a $70 million matter involving a surplus lines insurance carrier which issued financial guarantee bonds related to the financing of real estate limited partnerships, leading to fraud and racketeering claims by investors, debt enforcement actions, securities claims, and litigation with bond lenders, reinsurers, and professionals.
• Mediated internal corporate dispute among the owners, officers and directors of a closely held corporation, resulting in competing breach of fiduciary and derivative claims seeking removal of directors and damages arising from alleged usurpation of corporate business opportunities, and alleged wrongful salaries, bonuses, and extravagant expenses.
• Mediated corporate governance and stockholder action involving inspection of books and records, derivative claims for truth in lending violations and financial irregularities, redemption of stock and damages related to unallocated stock options.
• Mediated derivative lawsuit against a religious non-profit corporation regarding various corporate governance procedures including board membership and elections, accounting controls and other internal controls.
• Handled a matter involving 11 broker-dealers in a national class action seeking to compel the payment of interest on free credit balances and to enjoin account transfer practices that have been approved by the SEC, alleging that class damages exceeded $1 billion.
• Handled a class action and other related actions involving an AmLaw 100 firm brought by investors who purchased real estate investment products, alleging legal malpractice, securities fraud, aiding and abetting breach of fiduciary duty and negligent misrepresentation. Total investors losses exceeded $900 million.
• Handled a matter between a class of investors and a national accounting firm arising from the bankruptcy of a major homebuilder, alleging errors in accounting for net realizable value write-offs and deferred tax asset estimates among other issues. Plaintiffs sought $95 million in damages.
• Handled an antitrust price fixing class action alleging agreements between online travel companies and hotels regarding the retail prices for online hotel room reservations.
• Handled a derivative claim matter involving an ocean marine service company arising from a settlement with the U.S. government of a Foreign Corrupt Practices Act Claim.
• Handled a bondholder class action securities matter involving an electric utility and the indenture trustee of certain first mortgage bonds arising out of the redemption of certain bonds at par value which the bondholders claimed should have been redeemed at a premium.
• Handled a matter involving multiple antitrust class actions alleging national price fixing of a commodity food product.
• Handled an antitrust class action matter where metal fabricating firms were alleged to have engaged in price fixing in California and Nevada.
• Handled an antitrust class action matter alleging price fixing by a paper manufacturer.