Securities Litigation

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Collora LLP attorneys handle high-stakes securities litigation and enforcement matters, resolving legal issues related to class actions, purchase and sale of securities, registration and disclosure statements, fraud, insider trading and shareholder derivative actions. Our focused civil and criminal experience brings the necessary sophistication when handling securities matters including investigations by the Securities and Exchange Commission (SEC), Massachusetts Securities Division, and other federal and state regulatory actions. We counsel corporations and partnerships, banks and financial services companies, chief executives, officers and managers, brokers and traders, shareholders, advisors, consultants, individuals and institutional investors in state and federal courts, as well as private arbitration forums.

Collora lawyers represent clients in a variety of securities-related litigation, including but not limited to the following:

  • Appropriateness of Investments
  • Churning of Investment Accounts
  • Class Action Defense
  • Collateralized Debt Obligations and Mortgage-Backed Securities
  • Failure to Disclose Investigations or Other Material Events
  • Failure to Follow Internal Compliance Procedures
  • Failure to Supervise Traders
  • False or Deceptive Disclosure and Registration Statements
  • Financial Statement Compliance with Generally Accepted Accounting Principles
  • FINRA Enforcement Actions
  • Fraud
  • Insider Trading
  • Market Manipulation
  • Market Timing, Parking and “Sticky Funds” Allegations
  • Options Backdating
  • Penny Stock Frauds
  • Private Offering Issues
  • Proper Charging of Rents, Expenses and Capital Items to Housing Projects
  • Revenue Recognition Practices
  • Selling Away Allegations
  • Shareholder Derivative Actions for Breach of Fiduciary Duty or Other Complaints
  • State and Federal Securities Regulations Violations
  • Suitability of Investments
  • Unlicensed Sale of Securities

Representative Experience

  • Successfully defended brokers and traders in a number of cases against a variety of claims involving allegedly defrauded investors.
  • Won arbitration award against broker who traded and churned investor accounts, recovering more than $2 million from three brokerage houses.
  • Secured dismissal of all claims against the CEO of a computer company accused of aiding and abetting in stock frauds.
  • Represented group of investors as plaintiffs in arbitration and recovered more than $1.7 million for clients.
  • Won a jury verdict on a civil claim for rescission brought under the Massachusetts Securities Act in Suffolk Superior Court.
  • Settled a case on favorable terms for Fortune 500 client after thorough investigation and refutation of stockholder damage claims made in a shareholder derivative action.
  • Brought and successfully settled case on behalf of a banking syndicate that suffered $50 million in damages arguably related to frauds of officers and directors and failures of independent auditor to detect and report those frauds.
  • Won a defense verdict from FINRA arbitration panel in case involving alleged frauds and “selling away” issues.
  • Represented a technology company and its directors in securities class action with no material charge, liability or settlement to report after complete investigation and resolution of complaints about alleged improper revenue recognition practices.
  • Brought motions for removal of case and dismissal of claims on behalf of international private investment fund. Case involved allegations of oral misrepresentations, undisclosed risks associated with mortgage-backed securities and violations of the state securities laws.
  • Successfully defended or settled a number of claims made by individual investors or class action groups of investors suing under Rule 10b-5 of the Securities Exchange Act of 1934.
  • Defended international investment bank serving as a financial advisor during investigation by the Massachusetts Securities Division triggered by a large corporate merger. No enforcement proceedings were commenced and the merger was consummated.
  • Defended international investment group in trial court action concerning alleged violations of the state securities act in connection with sales of certain investment products, such as collateralized debt obligations and mortgage-backed securities.
  • After conducting internal investigation into revenue recognition practices for the audit committee of a technology company, successfully represented the company in a related SEC investigation thereafter with no criminal charge or material liability to report.
  • Prevented sanctions against several investment company executives who received Wells notices from the government.
  • Ensured that no charges were issued against outside directors of hedge funds who were subject to inquiries from the Massachusetts Securities Division.
  • Represented two of five defendants charged with market-timing violations. Our clients, two brokers, allegedly circumvented internal controls put in place by their mutual fund employer and they served no jail time.
  • Represented a controller in federal probe involving alleged securities frauds committed by six individuals. Persuaded U.S. Attorney that indictment of our client was not proper, while four of the other five individuals were convicted.
  • Represented two investment professionals who worked for major mutual fund company in government probe regarding gifts and gratuities that allegedly violated conflict of interest and fidelity rules.
  • Avoided any charge, trial or publicity with a negotiated civil restitution settlement for investment adviser group in probe by U.S. Attorney and the SEC into whether the advisers knew or should have known that an investment was fraudulent.
  • Achieved favorable settlement of allegations of illegal gifts and gratuities to hedge fund managers for prime broker client.