We are involved in several cases brought by investors arising from the malfeasance of officers and directors in connection with both the sale of securities and the management of business enterprises. Our attorneys have extensive experience representing investors in securities fraud actions, bringing cases against financial schemes and malfeasance that harmed investors. This includes our participation in some of the most significant securities cases in recent history, as well as many other securities fraud cases of more modest dimensions. Under federal securities laws, we have recovered damages against the wrongdoing corporation and its officers and directors. With our Washington expertise, we were involved in the famous Enron and WorldCom securities fraud cases, which involved billions of dollars of financial losses to shareholders. We are also currently involved in a number of "derivative" cases which allow shareholders to pursue claims on behalf of a corporation against corporate officers and directors who have caused injury to the corporation.
CGL served as Washington Counsel in the Enron-related securities litigation In re Enron Corp. Sec., Derivative, which recovered over $7 billion on behalf of the injured parties, the largest recovery ever obtained for investors victimized by corporate fraud. With litigation led by the Regents of the University of California, the firm worked on a host of projects in this mammoth securities case.
CGL assisted lead counsel and the lead plaintiff, the New York Common Public Retirement Fund, in the enormous securities class action In re WorldCom, Inc., Securities Litigation. First, we served as Washington counsel, monitoring relevant Congressional and regulatory developments, where we succeeded in getting a crucial amendment on securities fraud into the Sarbanes-Oxley Act.
Pleading Standard Under Private Securities Litigation Reform Act
The firm filed an amicus curiae brief in Tellabs, Inc. v. Makor Issues & Rights on behalf of Public Citizen and the Center for Study of Responsive Law (a Ralph Nader organization) addressing the heightened pleading standard under the Private Securities Litigation Reform Act (PSLRA).
IIF Data Solutions
Mr. Cynkar was brought in at the eleventh hour as part of a new legal team to help defend a 600-employee government contractor from accusations that it had defrauded the government in its GSA Schedule Contract. With over $100 million claimed in damages, and the threat of debarment from government contracting if found guilty, this was a bet-the-company case.
First Regional Bancorp Securities Litigation
In Buttonwood Tree Value Partners, LP, et al. v. Jack A. Sweeney, et al., Civil Action No. 10-cv-00537-CJC-MLG (U.S. District Court for the Central District of California), CGL was appointed co-lead counsel to represent investors who filed a securities fraud class action against certain former officers and directors (the “Defendants”) of First Regional Bancorp (“FRB”), and its former banking subsidiary, First Regional Bankin Federal Court in Orange County, California. Plaintiffs alleged that the defendants made misrepresentations and omissions concerning the company’s financial and operating condition which caused FRB’s stock price to be artificially inflated. CGL and its co-counsel succeeded in defeating multiple motions to dismiss the action brought by the Defendants, as well as a motion for summary judgment. The Court granted a motion to certify a class of investors that was vigorously contested by the Defendants. The case was later amicably resolved, resulting in the creation of a settlement fund for the benefit of the Class.