Securities Class Actions
Burdine Wynne’s lawyers have successfully handled numerous class actions, including securities class actions such as minority shareholder oppression suits.
In a securities class action, an investor or group of investors files an action on behalf of a large number of investors (a “class”), all of whom have suffered a similar type of loss (typically a drop in stock price) arising from federal securities laws violations such as material misrepresentations, failures to disclose, or failure to appropriately value the stock in a merger or acquisition. Often, the false or misleading statements include matters such as a company’s financial condition, business operations or prospects for earnings or growth, which wrongfully inflates the stock. The class is usually made up of people who purchased the same investment or group of investments during the time frame (the “class period”) that the false information was promoted. A securities class action seeks damages for investors who acquired stock during the period of time when fraud caused the price of the stock to be artificially inflated. Investors may have overpaid for the stock, or would not have purchased the stock at all, if they had known the truth.
Ken Wynne and David Wynne represented a class of minority shareholders in a medical waste management company against the majority parent alleging several theories of action that primarily included minority shareholder oppression. After almost four years of intense litigation, jurisdictional and legal challenges, related but diversionary suits in Harris County, removal to federal court and remand, hundreds of thousands of pages of documents produced, many of which required court orders, approximately forty oral depositions in locations across the country, thirteen motions to compel and for sanctions, awards of a total of $230,000 in monetary sanctions and ultimately an order prohibiting the defendants from offering affirmative evidence in support of their defenses, the case settled in November, 2005 for $32,500,000 in cash. The firm was awarded a fee of $10,833,333.00 and reimbursement of its several hundred thousand dollars in expenses. The defendants were represented by Kirkland & Ellis from Chicago and by a local firm in Shreveport.
If you have a significant securities claim that may form the basis of a class action or have been sued in connection with securities fraud, contact Burdine Wynne for a consultation.