Securities Litigation

Working Capital


Blank Rome has extensive experience handling all facets of contested federal securities matters including class action and shareholder litigation, as well as enforcement proceedings initiated by government regulators and self-regulatory organizations. Additionally, as part of its practice, Blank Rome attorneys conduct internal reviews of corporation’s and hedge funds’ securities issues, provide litigation advise related thereto and counsel on compliance and best practices matters.

Securities Class Action Litigation

Our attorneys regularly represent clients in class, derivative and individual actions alleging securities fraud, breach of fiduciary duty and other corporate misconduct.  We regularly defend public companies and their officers and directors in federal courts throughout the nation in class actions by securities holders under the Securities Act, Securities Exchange Act, and the Investment Company Act.  These, “bet the company” cases traditionally pose a significant risk not only to the company, but also to its senior management and directors, who are frequently named as individual defendants.  Blank Rome has a proven track record of obtaining favorable results for its clients in these high stakes matters. 

Select Engagements

  • Represented defense contractor and certain officers and directors in consolidated class action in the Eastern District of Pennsylvania for violations of the Securities and Exchange Act of 1934 following indictment of company and Chairman for alleged government contracting fraud.  Resulting in a favorable settlement for defendants.
  • Represented multi-state bank in securities class action filed in the District of New Jersey relating to allegations of fraudulent business model.  Motion to Dismiss granted by District Court and affirmed by the Third Circuit Court of Appeals.
  • Represented software producer and certain of its officers and directors in consolidated class action in the Southern District of New York following corporation’s restatement of earnings for two fiscal years and initiation of SEC investigation.  Represented an e-mail service company and its directors and officers in an action pending in the District of Kansas alleging claims under the Section 10(b) of the Securities and Exchange Act of 1934. Motion to Dismiss granted by District Court.
  • Represented a specialty generic pharmaceutical company and certain of its directors and officers in a securities class action suit predicated on allegations of misleading statements concerning revenue, reserves, and income. 
  • Represented former director and officer of large retail (catalog and mail order) company in a consolidated class action filed in the Northern District of Illinois concerning allegations of securities fraud under Section 10(b) and 20(a) of the Securities and Exchange Act of 1934.  Represented board of directors of publicly traded defense contractor in shareholder derivative action relating to breach of fiduciary duty allegations stemming from indictment of former Chairman.
  • Represented former officers of bankrupt major auto components manufacturer against allegations of accounting fraud in class action lawsuits in the Eastern District of Michigan, breach of fiduciary duties lawsuit in District of Delaware and related grand jury and SEC investigations in the Southern District of New York.
  • Represented cable television channel and certain of its officers and directors in securities fraud class action in Southern District of Florida.
  • Represent private asset management entity in connection with Madoff related issues including, but not limited to, defensive litigation strategies and resolving possible claims related thereto. In this regard, Blank Rome has an unique, extensive and in depth knowledge of virtually all Madoff related matters that can provide sophisticated legal advice relating to issues arising out of the on-going, inter-related Madoff proceedings.

Securities Enforcement Proceedings

We have counseled and provided litigation services to a broad array of clients, including issuers, private companies, accounting firms, financial services companies and other market participants, in a full range of proceedings initiated by the Securities and Exchange Commission, the Department of Justice, the Financial Industry Regulatory Authority (FINRA), state securities regulators and attorneys general and other governmental agencies and self-regulatory organizations.  These proceedings range from informal inquiries and formal investigations to administrative and judicial enforcement proceedings.  Blank Rome has broad and deep experience in matters arising from alleged insider trading, market manipulation, accounting improprieties, disclosure problems and SEC reporting, and violations of the Investment Advisors Act.  Importantly, some of our most successful representations in these matters involve preventing an actual enforcement proceeding from being filed, and thus they cannot be mentioned here.

Select Engagements

  • Represented a former employee of Credit Suisse in an investigation commenced by the Securities and Exchange Commission regarding CDOs.
  • Represented registered investment adviser in trial before Securities and Exchange Commission concerning the sale of Class B mutual funds.
  • Represented publicly traded financial institution in FINRA investigation concerning municipal securities.
  • Represented former hedge fund founder in SEC investigation regarding insider trading.
  • Represented pharmaceutical manufacturer in SEC administrative trial to revoke the registration of its publicly traded securities.
  • Represented various natural gas and electricity traders with respect to investigations by Commodities Futures Trading Commission, Federal Energy Regulatory Commission, U.S. Department of Justice and several states Attorneys General into California energy crisis.

China Securities Litigation Task Force

Blank Rome’s Asia Practice provides experienced legal representation for Asia-based clients doing business in the U.S. and for U.S. clients doing business in Asia, through its offices in Shanghai, New York, Washington, Philadelphia, Los Angeles, Houston, and Delaware.  Our Asia-based capital markets practice regularly represents Chinese companies that are listed on the U.S. exchanges.

In the current turbulent environment, many Chinese public companies are becoming targets of shareholder class action and derivative litigation.  In response, Blank Rome combined the multi-disciplinary knowledge of its Delaware Chancery Court, D&O insurance, SEC and regulatory enforcement, corporate governance and securities practices, into a task force to effectively deal with the many complex aspects presented by this litigation.

The Task Force members have extensive experience representing many Chinese public companies in numerous industries. The team has handled matters in the U.S. courts, before the SEC and other regulators, including FINRA, through its U.S. offices, while handling fact finding, case management, and client relations through its Shanghai office.



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