Securities Litigation and Enforcement
Securities Litigation and Enforcement
Companies and investment professionals, faced with a securities litigation claim or an enforcement investigation, must defend against these claims while continuing their business and minimizing expense and disruption. 

The primary goals remain winning the case and/or persuading regulators to stand down.  Because insurance policies are foisting more of the initial litigation costs onto insureds, companies and their management have also begun focusing upon how to most efficiently deliver positive results.

Kelley Drye’s securities litigation group understands and responds to these new demands and needs.  Our group is currently led by experienced veterans who helped steer companies and regulated professionals through crises in the dot-com bust and financial crisis eras.  Clients across a broad range of industries rely on our nationwide team to provide them with a deep and talented bench of seasoned trial lawyers, former prosecutors, Securities and Exchange Commission officials and other government regulators, including the cofounder of the SEC’s post-Madoff Division of Economic and Risk Analysis (DERA) and the principal editor of Business Litigation in Federal Courts (4th Ed.).

Our team has successfully tried dozens of cases before juries, administrative law judges and arbitrators.  We have successfully negotiated favorable civil and criminal resolutions with federal and state authorities and won countless motions to dismiss private class actions.  We have been at the forefront of securities litigation for decades—in fact one of the very first stockholder cases to reach the U.S. Supreme Court, Fourth Nat’l Bank v. Francklyn, 120 U.S. 747 (1887), was successfully argued by William Allen Butler, a then-senior partner at the firm.

Our team serves clients in all types of securities cases: securities fraud class and individual actions, SEC investigations and enforcement action defense, derivative suits against directors and officers, and criminal securities and insider trading cases brought by federal and state regulators and prosecutors.  We regularly handle claims brought under Sections 10(b), 14(a), 18 and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934, Sections 11, 12 and 17(a) of the Securities Act of 1933, Sections 206(1), (2) and (4) and Rule 206(4)-8 of the Investment Advisers Act, and state blue-sky laws.  We also often represent clients in connection with formal and informal investigations by the Justice Department, Securities and Exchange Commission (SEC), New York Stock Exchange (NYSE), Financial Industry Regulatory Authority (FINRA) and state attorneys general.

Throughout these actions, Kelley Drye attorneys put client service at the forefront of everything we do.  From the development of the initial strategy through the potential recoupment of defense costs from insurance, indemnity or elsewhere, the client’s goals remain at the center of all that we do.  With an unwavering focus on our clients, combined with our extensive experience and creative problem-solving, we work every day to earn and retain the trust and confidence of our clients facing some of the most sensitive and challenging securities claims.

  • Trial counsel to JPMorgan Chase in a month-long federal jury trial to recover over $1 billion from insurers that had guaranteed securitized structured finance transactions.  Favorable settlement reached during jury deliberations.

  • Trial counsel to Bruce Bent, co-inventor of the money market fund, and his son Bruce Bent II, in SEC civil enforcement action arising out of “breaking of the buck” at Reserve Primary Fund.  Following a month-long trial, a Manhattan federal jury rendered a unanimous verdict in favor of the Bents, clearing them of all securities fraud charges.  Thereafter, a related billion-dollar class action was settled on highly favorable terms.

  • Represented one of the world’s largest banks in a class action by Enron shareholders claiming that several banks, including our client, were liable under securities laws for Enron’s false financial statements. The case, which settled favorably, included cross-claims by and against Arthur Andersen, Enron’s former accountants.

  • Obtained dismissal, affirmed by the Second Circuit, of securities fraud suit brought against Shinhan Bank, one of Korea’s largest banks, seeking $600 million in damages.

  • Advised one of the world’s largest banks on settlement issues arising out of a securities class action brought by purchasers of WorldCom bonds, including substantial litigation on the propriety of the entry of a Bar Order by the District Court.

  • Represented a major telecommunications company and its management in multi-district securities litigation, noteholder claims and Congressional and enforcement investigations arising out of the company’s 2002 bankruptcy filing.

  • Represented the largest privately owned Russian oil company in winning a motion to dismiss securities class action claims.

  • Represented a Russian mining and minerals concern in winning dismissal of a securities class action claims and securing affirmance of that dismissal by the Second Circuit Court of Appeals. 

  • Represented former NYSE directors in the New York Attorney General v. Grasso case.

  • Represented the former Chief Financial Officer of the owner of numerous supermarket and food service concerns worldwide, in the Royal Ahold NV Securities Litigation, one of the largest securities fraud class actions ever filed.

  • Represented Raymond James Financial Inc. and management in class action securities fraud action seeking over $2 billion for the decline in value of RJF’s stock.  Obtained complete dismissal of action for clients prior to start of discovery.

  • Defended publicly registered shell company from action by SEC to revoke its registration through appeal before full Commission.

  • Submitted amici brief on behalf of American Bankers Association in Supreme Court appeal of Virginia Bankshares v. Sandberg.

  • Submitted amici brief on behalf of Caceis Bank France and Caceis Bank Luxembourg in Second Circuit appeal of In re Bernard L. Madoff Inv. Sec. LLC.






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Overview

Companies and investment professionals, faced with a securities litigation claim or an enforcement investigation, must defend against these claims while continuing their business and minimizing expense and disruption. 

The primary goals remain winning the case and/or persuading regulators to stand down.  Because insurance policies are foisting more of the initial litigation costs onto insureds, companies and their management have also begun focusing upon how to most efficiently deliver positive results.

Kelley Drye’s securities litigation group understands and responds to these new demands and needs.  Our group is currently led by experienced veterans who helped steer companies and regulated professionals through crises in the dot-com bust and financial crisis eras.  Clients across a broad range of industries rely on our nationwide team to provide them with a deep and talented bench of seasoned trial lawyers, former prosecutors, Securities and Exchange Commission officials and other government regulators, including the cofounder of the SEC’s post-Madoff Division of Economic and Risk Analysis (DERA) and the principal editor of Business Litigation in Federal Courts (4th Ed.).

Our team has successfully tried dozens of cases before juries, administrative law judges and arbitrators.  We have successfully negotiated favorable civil and criminal resolutions with federal and state authorities and won countless motions to dismiss private class actions.  We have been at the forefront of securities litigation for decades—in fact one of the very first stockholder cases to reach the U.S. Supreme Court, Fourth Nat’l Bank v. Francklyn, 120 U.S. 747 (1887), was successfully argued by William Allen Butler, a then-senior partner at the firm.

Our team serves clients in all types of securities cases: securities fraud class and individual actions, SEC investigations and enforcement action defense, derivative suits against directors and officers, and criminal securities and insider trading cases brought by federal and state regulators and prosecutors.  We regularly handle claims brought under Sections 10(b), 14(a), 18 and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934, Sections 11, 12 and 17(a) of the Securities Act of 1933, Sections 206(1), (2) and (4) and Rule 206(4)-8 of the Investment Advisers Act, and state blue-sky laws.  We also often represent clients in connection with formal and informal investigations by the Justice Department, Securities and Exchange Commission (SEC), New York Stock Exchange (NYSE), Financial Industry Regulatory Authority (FINRA) and state attorneys general.

Throughout these actions, Kelley Drye attorneys put client service at the forefront of everything we do.  From the development of the initial strategy through the potential recoupment of defense costs from insurance, indemnity or elsewhere, the client’s goals remain at the center of all that we do.  With an unwavering focus on our clients, combined with our extensive experience and creative problem-solving, we work every day to earn and retain the trust and confidence of our clients facing some of the most sensitive and challenging securities claims.

Experience

  • Trial counsel to JPMorgan Chase in a month-long federal jury trial to recover over $1 billion from insurers that had guaranteed securitized structured finance transactions.  Favorable settlement reached during jury deliberations.

  • Trial counsel to Bruce Bent, co-inventor of the money market fund, and his son Bruce Bent II, in SEC civil enforcement action arising out of “breaking of the buck” at Reserve Primary Fund.  Following a month-long trial, a Manhattan federal jury rendered a unanimous verdict in favor of the Bents, clearing them of all securities fraud charges.  Thereafter, a related billion-dollar class action was settled on highly favorable terms.

  • Represented one of the world’s largest banks in a class action by Enron shareholders claiming that several banks, including our client, were liable under securities laws for Enron’s false financial statements. The case, which settled favorably, included cross-claims by and against Arthur Andersen, Enron’s former accountants.

  • Obtained dismissal, affirmed by the Second Circuit, of securities fraud suit brought against Shinhan Bank, one of Korea’s largest banks, seeking $600 million in damages.

  • Advised one of the world’s largest banks on settlement issues arising out of a securities class action brought by purchasers of WorldCom bonds, including substantial litigation on the propriety of the entry of a Bar Order by the District Court.

  • Represented a major telecommunications company and its management in multi-district securities litigation, noteholder claims and Congressional and enforcement investigations arising out of the company’s 2002 bankruptcy filing.

  • Represented the largest privately owned Russian oil company in winning a motion to dismiss securities class action claims.

  • Represented a Russian mining and minerals concern in winning dismissal of a securities class action claims and securing affirmance of that dismissal by the Second Circuit Court of Appeals. 

  • Represented former NYSE directors in the New York Attorney General v. Grasso case.

  • Represented the former Chief Financial Officer of the owner of numerous supermarket and food service concerns worldwide, in the Royal Ahold NV Securities Litigation, one of the largest securities fraud class actions ever filed.

  • Represented Raymond James Financial Inc. and management in class action securities fraud action seeking over $2 billion for the decline in value of RJF’s stock.  Obtained complete dismissal of action for clients prior to start of discovery.

  • Defended publicly registered shell company from action by SEC to revoke its registration through appeal before full Commission.

  • Submitted amici brief on behalf of American Bankers Association in Supreme Court appeal of Virginia Bankshares v. Sandberg.

  • Submitted amici brief on behalf of Caceis Bank France and Caceis Bank Luxembourg in Second Circuit appeal of In re Bernard L. Madoff Inv. Sec. LLC.






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Partner
Email (212) 808-5000(212) 808-5000
John Dellaportas is co-chair of Kelley Drye’s Securities Litigation and Enforcement practice.  John has more than two decades of experience representing clients in high-stakes commercia...
Partner
Email (212) 808-5145(212) 808-5145
Jeff Jacobson defends consumer, privacy and securities class actions, and represents media, technology and other companies in general commercial litigation. With nearly two decades in private prac...
Partner
Email (212) 808-7718(212) 808-7718
John Callagy has served as trial and appellate counsel for numerous disputes in various federal and state courts, representing his clients on virtually all legal issues affecting large domestic an...
Partner
Email (212) 808-7534(212) 808-7534
Jon Cooperman is an experienced trial attorney. His practice focuses on all aspects of civil litigation, including commercial litigation and contract disputes; environmental law claims pertai...
Partner
Email (212) 808-7847(212) 808-7847
Robert Crotty’s practice is focused on commercial litigation, trials, appeals and arbitrations.  With more than four decades of experience, Bob has represented clients in the automobile...
Partner
Email (212) 808-7715(212) 808-7715
Bob Haig’s practice focuses on commercial and other types of civil litigation in federal and New York state courts at both the trial and appellate levels. A veteran litigator and proven...
Partner
Email (212) 808-7714(212) 808-7714
Bruce Kraus is a partner in the New York corporate practice and chair of the Corporate Finance and Securities practice group. A leading practitioner in mergers & acquisitions, corporate financ...
Partner
Email (312) 857-7238(312) 857-7238
Randy Lehner guides his clients through the process of identifying and defending claims of misrepresentation, mismanagement and/or fraud. He conducts internal investigations that determine re...
Partner
Email (212) 808-5082(212) 808-5082
Michael Lynch is chair of the firm’s Litigation practice.  Michael has extensive trial experience, both from his days as a prosecutor in New York City under the legendary Robert Morgent...
Partner
Email (203) 351-8039(203) 351-8039
Paul McCurdy chairs the firm’s Broker-Dealer practice group.  Paul represents retail, clearing and direct access broker-dealers, investment banking and advisory firms in regulatory, enf...
Partner
Email (212) 808-7695(212) 808-7695
Jaimie Nawaday focuses her practice on government investigations, white collar defense and civil litigation.  She advises and represents organizations and individuals in government investigati...
Partner
Email (212) 808-7889(212) 808-7889
Nicholas Panarella is a dedicated litigator, trial advocate and appellate attorney.  With more than two decades of experience in resolving serious, high-stakes disputes, Nick has litigated co...
Partner
Email (212) 808-7720(212) 808-7720
Sarah Reid has handled a wide range of commercial litigation for major U.S. and international companies involving contract, securities, False Claims Act, business torts, environmental and intellec...
Partner
Email (202) 342-8675(202) 342-8675
Mark Robeck co-chairs the firm’s Energy group.  Mark’s practice ranges from the resolution of all types of energy-related litigation claims, including arbitration and the use of o...
Partner
Email (312) 857-7083(312) 857-7083
Julian Solotorovsky chairs the firm’s White Collar Crime and Investigations practice group.  His practice is focused on litigation, including white collar crime, internal investigations...
Partner
Email (310) 712-6110(310) 712-6110
With more than four decades of practice as a trial lawyer, Andrew White has won jury and nonjury trials in a wide array of complicated, high-stakes business disputes.  Notably, the general co...
Senior Associate
Email (212) 808-5197(212) 808-5197
Kristina Allen’s broad litigation experience includes representing clients in complex contract disputes, fraud, trade secret misappropriation, securities and government investigations, among ...
Senior Associate
Email (310) 712-6155(310) 712-6155
David Jang is an experienced litigator representing clients in all phases of mass tort, securities litigation, shareholder derivative actions, First Amendment law, copyright, insurance and indemnit...
Senior Associate
Email (312) 857-2568(312) 857-2568
John Pirra advises clients on a variety of business matters, including commercial litigation, general liability, and tort defense in federal and state courts throughout the United States.  Joh...
Senior Associate
Email (202) 342-8422(202) 342-8422
Bezalel Stern’s practice focuses on commercial litigation, including litigation regarding complex business disputes, real estate and employment matters, and animal law.  Bezalel also adv...
Associate
Email (713) 355-5009(713) 355-5009
Lauren Valastro is an associate in the firm’s Houston office. She represents clients in general civil, complex commercial, and environmental litigation matters, at the trial and appellate le...

Publications

November 2014 | Books
Recent Developments in Securities Law, 2015 ed.: Leading Lawyers on Understanding Important Legislation and Complying with SEC Rules and Regulations
December 2013 | Books
Securities Crimes, Second Edition
December 2013 | Books
Securities Crimes, Second Edition
09/09/2013 | Articles
New York Law Journal