Securities Litigation

Holland & Knight’s Securities Litigation Team has extensive experience in all types of securities litigation.

Securities Class Action Group

We have substantial experience in defending issuers, officers, directors and underwriters against claims of securities fraud. We obtained one of the largest reported Rule 11 sanctions against plaintiffs and their counsel for bringing a frivolous securities class action. While the U.S. average for dismissals is 19%, our record for full dismissal or summary judgment is approximately 57%. Of those cases that are not dismissed, we have achieved, on average, a settlement that is less than one-third of the U.S. average.

Other significant recent successes include:

• obtained motion to dismiss that was affirmed on appeal in case of first impression for that circuit that held no general duty to disclose material facts, even in a prospectus — case cited as one of 10 most significant securities litigation decisions of 2002
• obtained dismissal for pharmaceutical company based on PSRLA statutory safe harbor and on truth on the market defense
• persuaded plaintiffs’ counsel not to file a securities class action based on cookie jar reserve theory by explaining in detail the company’s reserve policies
• obtained motion to dismiss in S.D.N.Y. in action against underwriters of private offerings of asset-backed securities
• obtained summary judgment on breach of contract and blue sky law claim against major financial institution selling derivatives pursuant to an ISDA Agreement
• obtained a $193 million judgment for a defendant class in connection with a determination of the rights of unit investment trust holders arising out of a WPPS municipal bond default
• obtained a $3.6 million verdict in a 3-1/2 month trial involving federal and Georgia state securities law violations
• obtained a dismissal of an attempted class action by investors in a limited partnership for a national restaurant franchise in the state of Washington
• after a three-week trial, obtained a directed verdict and ultimate settlement for defendants in an action brought by investors in oil and gas limited partnerships
• obtained a motion to dismiss in Delaware for TV network in a derivative action challenging a $415 million stock purchase by another TV network
• obtained dismissal of derivative action challenging merger between two U.S. food franchise chains

SEC Enforcement Group

We have substantial experience in conducting and handling securities investigations, both criminal investigations by the Department of Justice and civil investigations by the SEC. With a former SEC Regional Trial Counsel and over a dozen former federal prosecutors, including the former Chief of Staff to the U.S. Attorney General, we represent clients in all phases of securities enforcement matters, including informal and formal investigations, testimony, Wells Submissions, negotiated resolutions, and the trial of administrative, civil and criminal proceedings.

We also work collaboratively with other Holland & Knight lawyers who concentrate in investment management issues and regulatory compliance by broker-dealers and registered investment advisors.

We have successfully defended investigations and enforcement actions dealing with virtually every “hot button” SEC enforcement issue, including:

• market timing of mutual funds
• insider trading
• revenue recognition by public companies
• related-party transactions by public companies
• aiding and abetting liability of contra parties
• accounting for loss reserves and asset impairment by a public company
• “prime bank” Ponzi schemes

Customer Disputes

Another substantial part of our Securities Litigation Team is representing brokerage firms, registered representatives, financial planners, and investment advisors in securities arbitrations by the NASD, NYSE, AMEX, CFTC, NFA and AAA.

We have litigated and arbitrated cases on behalf of brokerage firms, mutual fund companies, and other financial institutions. These cases have involved claims of fraud, churning, suitability, negligence, negligent supervision, market manipulation, order failures, Reg T violations, unauthorized trading, wrongful termination, defamation, breach of non-compete covenants and tortious interference claims. We have handled cases involving a variety of securities, including stocks, options, commodities, bonds, derivatives, limited partnerships, mutual funds, collateralized mortgage obligations and annuities.

Our arbitration experience includes both pre-arbitration and post-arbitration proceedings in state and federal courts, the enforcement of arbitration agreements or status quo injunctions and the confirmation, modification or vacation of arbitration awards. Our successes include the dismissal of a $34 million NASD arbitration claim against a major brokerage firm prior to an evidentiary hearing.