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.

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).

Pearlstein v. Blackberry Ltd., et al., No. 1:13-CV-07060-CM (S.D.N.Y.). Lead Counsel.  The Hon. Colleen McMahon, United States District Judge for the Southern District of New York, entered a Final Judgment in this federal securities class action, approving a $165 million settlement between Lead Plaintiffs, represented by Lead Counsel KSF, and BlackBerry, Limited. The settlement, one of the largest securities litigation recoveries of 2022 and achieved on the eve of trial, resolved Plaintiffs’ claims that BlackBerry made materially false and misleading statements and omissions regarding the sales of, and accounting relating to, its BB10 smartphones.

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.

In re Chicago Bridge & Iron Secs. Litig., Case No. 1:17-cv-1580-LGS (S.D.N.Y.).  On August 2, 2022, the Hon. Lorna G. Schofield, United States District Judge for the Southern District of New York, entered a Final Judgment in this federal securities class action, approving a $44 million settlement obtained by Plaintiffs and KSF, as Lead Counsel, against a large engineering, procurement, and construction company, and certain officers and directors. The lawsuit alleged that Defendants made materially false and misleading statements and omissions regarding the performance of, and accounting relating to, CBI’s nuclear business.

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.

Kanefsky v. Honeywell International Inc. et al., Case No. 2:18-cv-15536-WJM-JAD (D. N.J.). On May 3, 2022, the Hon. William J. Martini, United States District Judge for the District of New Jersey, entered a Final Judgment approving a $10 million settlement in this securities class action lawsuit in which KSF served as lead counsel.  The lawsuit alleged 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, noting automotive products.

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.”

Areas of Practice

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 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
  • 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
  • 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