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
- Bellingham v. Qudian Inc. et al., 1:20-cv-0577-GHW
Southern District of New York
Co-Lead Counsel - In re CarLotz, Inc. Securities Litigation, Case No. 1:21-cv-05906-RA
Southern District of New York
Lead Counsel - In re Chicago Bridge & Iron Co. N.V. Secs. Litig., 1:17-cv-1580-LGS
Southern District of New York
Lead Counsel - In Re Cloudera Securities Litigation, 5:19-cv-03221-LHK
Northern District of California
Lead Counsel - Farrar v. Workhorse Group Inc., et al., No. 2:21-cv-02072-CJC-PVC
Central District of California
Lead Counsel - Hogan v. Pilgrim’s Pride Corp., et al., 1:16-cv-02611-RBJ
District of Colorado
Lead Counsel - Kanefsky v. Honeywell International, Inc., et al., Case No. 2:18-cv-15536-WJM-JAD
District of New Jersey
Lead Counsel - Moradpour v. Velodyne Lidar, Inc., et al, Case No. 3:21-CV-01486-SI
Northern District of California
Lead Counsel - In re Pareteum Securities Litigation, Case No. 1:19-cv-09767-AKH-GWG
Southern District of New York
Lead Counsel - Pearlstein v. Blackberry Ltd., et al., 1:13-CV-07060-TPG
Southern District of New York
Lead Counsel - Sandoz v. Waterdrop Inc. et al., Case No. 1:21-cv-7683-VSB
Southern District of New York
Lead Counsel - Siegel v. The Boston Beer Company, Inc. et al., Case No. 1:21-cv-7693-VSB
Southern District of New York
Lead Counsel - Welch v. Meaux, et al., No. 19-1260
Western District of Louisiana
Lead Counsel
RECENT VICTORIES
Siegel v. The Boston Beer Company, Inc. et al., Case No. 1:21-cv-7693-VSB (S.D.N.Y.). On December 14, 2021, the Hon. Vernon S. Broderick, United States District Judge for the Southern District of New York, entered an Order approving the selection of KSF as Lead Counsel for the putative Class. Boston Beer and certain of its executives are charged with violating the federal securities laws through misrepresentations and omissions during the Class Period regarding rapidly decelerating hard seltzer sales.
Sandoz v. Waterdrop Inc. et al., Case No. 1:21-cv-7683-VSB (S.D.N.Y.). On December 8, 2021, the Hon. Vernon S. Broderick, United States District Judge for the Southern District of New York, entered an Order approving the selection of KSF as Lead Counsel for the putative Class. Waterdrop and certain of its executives are charged with violating the federal securities laws through misrepresentations and omissions concerning the Company’s short-term financial results leading up to the Company’s Initial Public Offering.
Farrar v. Workhorse Group, Inc. et al., Case No. 2:21-cv-02072-CJC-PVC (C.D. Cal.). On December 2, 2021, the Hon. Cormac J. Carney, United States District Judge for the Central District of California, entered an Order denying, in substantial part, Defendants’ motion to dismiss against Workhorse Group, Inc. and individual defendants Duane Hughes and Steve Schrader. This matter, in which Kahn Swick & Foti, LLC is Lead Counsel, alleges that Defendants made materially false and misleading statements and failed to disclose material information regarding the Company’s manufacturing capabilities and its capacity to deliver electric vehicles. The matter further alleges that when the full truth was finally brought to light on February 23, 2021, the Company’s stock declined over 47% from February 22 to February 23. Judge Carney agreed, finding Lead Plaintiff’s allegations were “indicative of scienter, because they tend to show that Workhorse and its executives knew they did not have the manufacturing capability to meet their production projections or the touted demand for their vehicles.”
In re CarLotz, Inc. Securities Litigation, Case No. 1:21-cv-05906-RA (S.D.N.Y.). On October 15, 2021, the Hon. Ronnie Abrams, United States District Judge for the Southern District of New York, entered an Order approving the selection of KSF as Lead Counsel for the putative Class. CarLotz and certain of its executives are charged with violating the federal securities laws through misrepresentations and omissions during the Class Period regarding their business and business model in order to garner investor support for a merger between CarLotz and SPAC Acamar and artificially inflate the price of their stock.
In re Chicago Bridge & Iron Co. N.V. Secs. Litig., Case No. 1:17-cv-1580-LGS (S.D.N.Y). On August 23, 2021, the Honorable Lorna G. Schofield entered an Opinion and Order substantially denying a motion for summary judgment filed by Defendant Chicago Bridge & Iron Company N.V. (“CBI”) and Individual Defendants Philip K. Asherman, Ronald A. Ballschmiede, and Westley S. Stockton. In their Motion, Defendants argued that no reasonable jury could find 16 statements about the performance of, and accounting relating to, CBI’s nuclear business (the “Challenged Statements”) were false and misleading or made with scienter. The District Court rejected most of Defendants’ arguments and held a reasonable jury could find that all but one of the Challenged Statements were made with scienter, and that all but one of the Challenged Statements “provided inadequate context, with the effect of suggesting facts starkly at odds with much of the record evidence.”
Dougherty v. Esperion Therapeutics, Inc., et al., No. 2:16-cv-10089 (E.D. Mich.). On August 24, 2021, the Hon. Arthur J. Tarnow, United States District Court Judge for the Eastern District of Michigan, entered a final judgment in the securities class action lawsuit, approving Lead Plaintiffs’ $18.25 million recovery for investors stating that KSF “pursued the Litigation and achieved the Settlement with skill, perseverance, and diligent advocacy.”
Abramson v. NewLink Genetics Corp., 2020 U.S. App. LEXIS 21545, at *3 (2d Cir. July 13, 2020). On July 13, 2020, a three-judge panel for the Second Circuit Court of Appeals vacated in part the dismissal order of Hon. William H. Pauley III, reviving investors’ Exchange Act claims against NewLink Genetics Corp. The detailed 26-page opinion written by Hon. John M. Walker, Jr., and designated for publication, holds that “Plaintiffs plausibly pled material misrepresentation and loss causation for Defendants’ statements about the scientific literature and the design of their clinical trial,” contrary to the holding of the district court. Notably, the Second Circuit credited KSF’s loss causation theory as “persuasive” and “compelling,” and provided significant development on this element of securities fraud cases going forward. Id. at *28.
Kanefsky v. Honeywell International Inc. et al., Case No. 2:18-cv-15536-WJM-JAD (D. N.J.). On May 18, 2020, Hon. William J. Martini, United States District Judge for the District of New Jersey, entered an Order denying Defendants’ motion to dismiss by Honeywell, and individual defendants Darius Adamczyk, and Thomas A. Szlosek. A third individual defendant was dismissed from the action. This matter, in which Kahn Swick & Foti is Lead Counsel, alleges that Defendants made materially false and misleading statements and failed to disclose material information regarding Honeywell’s liabilities relating to former subsidiary Bendix Friction Materials’ use of asbestos in certain automotive products. The matter further alleges that when the truth was finally brought to light on October 19, 2018 (after Honeywell released its quarterly report for the third quarter of 2018), the stock fell from an opening price of $151.25 per share to $140.83 per share as of market close on October 24, 2018. Judge Martini agreed, finding Lead Plaintiff’s “alleged facts raise a strong inference of scienter.”
Settled Cases
In re Petrobras Securities Litigation, No. 1:14-cv-9662 (S.D.N.Y.). Member of Plaintiffs’ Steering Committee for the Individual Actions (“PSC”), federal securities class action against Brazil’s state-controlled petrochemical company arising from “Operação Lava Jato,” the largest corruption scandal in the history of Latin America, whereby Plaintiffs alleged Defendants deliberately overpaid on various construction contracts in return for kickbacks. The Class action settled in 2018 for $3 billion and, as a member of the PSC, KSF was found by the Court to have “made a substantial contribution to the class,” June 22, 2018 Opinion and Order at 39 (D.E. 834).
Erica P. John Fund, Inc. v. Halliburton Co., et al., No. 3:02-cv-1152 (N.D. Tex.). Co-Class Counsel, federal securities class action against oilfield services company and a high-level officer, in which Class Counsel obtained a unanimous decision by the U.S. Supreme Court in Erica P. John Fund, Inc. v. Halliburton Co., et al., 563 U.S. 804 (2011) vacating and remanding a decision of the Fifth Circuit, and then successfully defeated Defendants’ attack on the Basic v. Levinson presumption of reliance in Halliburton Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014). These two Supreme Court decisions led to certification of the class, and ultimately resulted in a cash settlement of $100 million for investors.
Dr. Joseph F. Kasper, et. al. v. AAC Holdings, Inc., et. al., 3:15-cv-00923 (Consolidated) (M.D. Tenn.). Co-Lead Counsel, federal securities class action against a for-profit substance abuse treatment provider, and certain officers and directors, arising from Defendants’ misleading statements regarding a criminal investigation into the death of a patient, resulting in a settlement of $25 million for investors.
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.
Dougherty v. Esperion Therapeutics, Inc., et al., No. 2:16-cv-10089 (E.D. Mich.). Co-Lead Counsel, federal securities action against a pharmaceutical company and its chief executive officer, arising from misleading statements assuring the market that its sole drug candidate would not require a completed (and costly) cardiovascular outcomes trial prior to approval, resulting in a settlement of $18.25 million for investors.
In Re Eletrobras Securities Litigation, Case No. 1:15-cv-05754 (Consolidated) (S.D.N.Y.). Co-Lead Counsel, federal securities class action against Centrais Eletricas Brasileiras S.A. and several of its former directors and officers, by U.S. investors after the company reported large losses related to a sprawling corruption scandal in Brazil. Nearly three years of protracted litigation resulted in a settlement of $14.75 million for investors.
Abramson v. NewLink Genetics Corp., et al., 1:16-cv-03545-AJN (S.D.N.Y.). Lead Counsel, federal securities action against a pharmaceutical company and certain officers arising from Defendants’ misleading statements regarding the about the scientific literature and the design of their clinical trial for a pancreatic cancer treatment candidate, resulting in a settlement of $13.5 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.
Khoja v. Orexigen Therapeutics, Inc., et al., No. 3:15-cv-00540-JLS-AGS (S.D. Cal.). Lead Counsel, federal securities class action against a pharmaceutical company, certain of its officers, and one its directors, arising from Defendants’ misleading statements regarding their release and interpretation of interim clinical study data purportedly demonstrating the cardiovascular benefits of the Company’s obesity drug. The litigation spanned six years and multiple venues, including a lengthy and successful appeals process before the Ninth Circuit Court of Appeals—which overturned much of the District Court’s initial Order dismissing all claims against Defendants—and a successful defense of that victory before the United States Supreme Court. Additionally, KSF took steps to protect the interests of the class in bankruptcy court after Orexigen filed for Chapter 11 bankruptcy. When the District Court granted final approval of the $4.8 million settlement in 2021, it highlighted the “significant results for the Settlement Class,” noting KSF’s “significant skill and extensive work” and that the “settlement may not have been reached without Lead Counsel’s skill and expertise.”