Securities Class Action Litigation

Kahn Swick & Foti prosecutes lawsuits on behalf of institutional and individual clients for stock fraud.  The firm sues corporations who issue materially false and misleading statements to investors about the company’s financial condition and/or business prospects, thereby artificially inflating the price of the company’s stock. Ultimately, investors suffer losses when the truth is finally revealed and the stock falls on such news. KSF litigates both class actions and private/opt out actions depending on the amount of a client’s losses.

CURRENT CASES

  • Abramson v. NewLink Genetics Corp., et al., 1:16-cv-03545-WHP
    Southern District of New York
    Lead Counsel
  • Archdiocese of Milwaukee Supporting Fund, et al., v. Halliburton Company, et al., 3:02-CV-1152-M
    Northern District of Texas
    Special Counsel for Plaintiff Class
  • Dougherty v. Esperion Therapeutics, Inc., et al., No. 16-10089
    Eastern District of Michigan
    Co-Lead Counsel
  • Dr. Joseph F. Kasper, et. al. v. AAC Holdings, Inc., et. al., 3:15-cv-00923 (Consolidated)
    Middle District of Tennessee, Nashville Division
    Co-Lead Counsel
  • In re Eletrobras Securities Litigation, 15-cv-5754-JGK
    Southern District of New York
    Co-Lead Counsel
  • In re Orexigen Therapeutics, Inc., Securities Litigation, 15cv540 L (KSC)
    Southern District of California
    Lead Counsel
  • Pearlstein v. Blackberry Ltd., et al., 1:13-CV-07060-TPG
    Southern District of New York
    Lead Counsel
  • In re Petrobras Securities Litigation, 14-cv-9662
    Southern District of New York
    Member, Plaintiffs’ Steering Committee for Individual Actions.
  • In re Rocket Fuel, Inc. Securities Litigation, 4:14-cv-03998-PJH
    Northern District of California
    Co-Lead Counsel

RECENT VICTORIES

Erica P. John Fund, Inc. v. Halliburton Co., et al., No. 3:02-cv-1152 (N.D. Tex. July 25, 2015). District Court certifies a class of investors, overcoming Defendants’ challenge to price impact in the wake of the Supreme Court’s decision in Halliburton Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014) (Halliburton II) (Reaffirming the fraud-on-the-market doctrine and limiting Defendants’ ability to rebut the presumption of reliance only upon proof that neither the alleged misrepresentations nor corrective disclosures impacted the stock price). KSF serves as Special Counsel for Plaintiff.

Erica P. John Fund, Inc. v. Halliburton Co., et al., 131 S. Ct. 2179 (2011). Federal securities class action against oilfield services company and a high-level officer, in which KSF was part of the team that obtained a unanimous decision by the U.S. Supreme Court vacating and remanding a decision of the Fifth Circuit regarding class certification.

In re CytRx Corp. Securities Litigation, 2:14-CV-01956-GHK (PJWx) (C.D. Cal.). KSF is sole lead counsel in this matter.  On July 13, 2015, the Honorable George H. King, Chief U.S. District Judge for the United States District Court for the Central District of California, denied in part defendants’ motion to dismiss and permitted the majority of plaintiff’s claims to proceed.  The Court’s ruling is reported at In re CytRx Corp. Securities Litigation, 2015 U.S. Dist. LEXIS 91447 (C.D. Cal. July 13, 2015).  On January 20, 2016, the Court granted preliminary approval for Lead Plaintiff’s $8,500,000 proposed settlement of this matter.

In re Orexigen Therapeutics, Inc., Securities Litigation, 15cv540 L (KSC), (S.D. Cal.). On June 22, 2015, the United States District Court for the Southern District of California appointed KSF as sole lead counsel, stating,” [t]he Court has reviewed the firm’s resume [ ] and is satisfied that the lead plaintiff has made a reasonable choice of counsel. The Kahn Swick & Foti firm has extensive experience in the prosecution of securities class actions and it appears that it will adequately represent the interests of all class members.”

Dr. Joseph F. Kasper, et. al. v. AAC Holdings, Inc., et. al., 3:15-cv-00923 (Consolidated) (M.D. Tenn.). On December 30, 2015, the Hon. Magistrate Judge John S. Bryant of the United States District Court for the Middle District of Tennessee entered an Order appointing KSF as co-lead counsel for the class.  This matter alleges that defendants made materially false statements and omissions regarding an investigation by the California Department of Justice into to the 2010 death of a patient at one of AAC’s subsidiaries.

In re Rocket Fuel, Inc. Securities Litigation, 4:14-cv-03998-PJH (N.D. Cal.). On December 23, 2015, the Honorable Phyllis J. Hamilton, U.S. Chief District Judge for the United States District Court for the Northern District of California partially denied defendants’ motion to dismiss.  The decision, reported at In re Rocket Fuel, Inc. Securities Litigation, 2015 U.S. Dist. LEXIS 171552 (N.D. Cal. Dec. 23, 2015), was recently discussed by the D&O Diary in a post entitled “Blog Post Statements Held Actionable Under the Federal Securities Laws.”

In re Eletrobras Securities Litigation, 15-cv-5754-JGK (S.D.N.Y.). On October 2, 2015, the Hon. John G. Koeltl of the United States District Court for the Southern District of New York entered an Order appointing KSF as lead counsel for the class.  This matter involves one of the largest kickback corruption schemes in Brazilian history. The complaint alleges that Defendants made materially false and misleading statements to investors concerning the award of contracts for multi-billion dollar construction projects controlled by Eletrobras and its subsidiaries. The Complaint alleges that the award of those contracts was principally the result of bribery and widespread corporate corruption by the Company and the Individual Defendants.

Settled Cases

In re Virgin Mobile USA IPO Litigation, 2:07-cv-05619-SDW-MCA (D.N.J.), Co-Lead Counsel, federal securities IPO-related class action against a company providing wireless communication services, certain officers and directors, certain controlling shareholder entities, and Virgin’s underwriters, resulting in a cash settlement of $19.5 million for investors.

In re Tesco PLC Securities Litigation, 14 Civ. 8495 (RMB) (S.D.N.Y.), Lead Counsel, federal securities class action against one of the world’s largest grocery and general merchandise retailers based in the U.K., resulting in an all-cash settlement of $12 million for investors in ADRs and F shares in the United States.

In re BigBand Networks, Inc Securities Litigation, 3:07-CV-05101-SBA (C.D. Cal.), Co-Lead Counsel, federal securities class action brought against a computer hardware corporation, certain officers and directors of the Company, and the Company’s Underwriters, resulting in a cash settlement of $11 million for investors.

In re U.S. Auto Parts Networks, Inc. Securities Litigation, 2:07-cv-02030-GW-JC (C.D. Cal.), Lead Counsel, federal securities IPO-related class action against an online automotive supply company, certain members of its board of directors, and its underwriters, resulting in a cash settlement of $10 million for investors.

In re CytRx Corp. Securities Litigation, 2:14-CV-01956-GHK (PJWx) (C.D. Cal.), Lead Counsel, federal securities class action brought against biotechnology corporation, certain officers and directors of the Company, and the Company’s Underwriters, resulting in a settlement of $8.5 million for investors.

In re ShoreTel, Inc. Securities Litigation, 3:08-cv-00271-CRB (N.D. Cal.), Lead Counsel, federal securities IPO-related class action brought against an Internet protocol telecommunications company, certain of its officers and directors, and its underwriters, resulting in a cash settlement of $3 million for investors.

In re Xethanol Corporation Securities Litigation, 1:06-cv-10234-HB (S.D.N.Y.), Lead Counsel, federal securities fraud class action against an ethanol production company and certain of its officers and directors, resulting in a cash settlement of $2.8 million for investors.

Mongeli v. Terayon Comm. Systems Inc. et al., 4:06-cv-03936-CW (N.D. Cal.), Co-Lead Counsel, federal securities fraud class action brought against a communications systems corporation, the Company’s outside auditor, and certain officers and directors, resulting in a cash settlement of $2.73 million for investors.

In re Opteum, Inc., Securities Litigation, 2:07-cv-14278-DLG (S.D. Fla.), Co-Lead Counsel, federal securities fraud class action brought against a Real Estate Investment Trust and certain of its officers and directors, resulting in a cash settlement of $2.35 million for investors.

In re: Meta Financial Group Inc., Securities Litigation, 10-4108-MWB, (N.D. Iowa), Lead Counsel, federal securities fraud class action against a bank and certain officers and directors, resulting in a cash settlement of $2.1 million for investors.