Overview
Allegations of securities fraud, a frequent tactic of the plaintiffs' bar, have long been considered abusive and expensive to defend. Katten's Securities Litigation group has played a prominent role both in challenging these class actions in court and in curbing them through legislative action. Our litigators — including several Securities and Exchange Commission enforcement attorneys — have been instrumental in bringing much-needed change to the way such lawsuits are brought and resolved.
Creating new law
Our attorneys have been defending these types of cases for decades — particularly for life sciences, financial services and other sophisticated companies — and have seen and addressed nearly every conceivable situation. When plaintiffs' lawyers create new types of claims, we develop new legal theories to protect public companies from meritless lawsuits. As examples, we helped stem the wave of “say-on-pay” litigation following Dodd-Frank, we argued for additional requirements for plaintiffs to have standing under Section 16(b) of the Exchange Act, and we helped draft the Private Securities Litigation Reform Act.
Winning at the pleading stage
We are often called on to handle our clients' most complex securities suits, and we defend them creatively and aggressively. We make sure the courts understand the true cause of a drop in stock price so they can be comfortable dismissing such suits, confident that securities fraud has not been committed. Since Congress adopted the heightened pleading standards now in widespread use, we have focused our efforts on winning securities fraud cases at the pleading stage, saving our clients the expense and distraction of discovery and trial.
Defending against derivative actions
In reaction to the heightened pleading standards, some plaintiffs have changed tactics, pursuing their claims as stockholder derivative actions alleging breaches of fiduciary duty. Our attorneys have responded to these tactics with successful litigation of corporate governance and derivative actions in Delaware and other jurisdictions.
Addressing regulatory claims
We also represent clients targeted in regulatory investigations, whether in connection with shareholder suits or alone. Our focus is, first, on convincing regulators that enforcement action is not warranted, and then, if necessary, defeating any claims resulting from an investigation. In this manner, we regularly address and defend clients against actions by these regulatory bodies:
- Securities and Exchange Commission
- Commodity Futures Trading Commission
- Financial Industry Regulatory Authority
- State attorneys general
- Other federal and state authorities.
"The team brings business acumen - their decisions are based on both legal analysis and real-world business judgment to determine clients' best course of action." "They provide excellent client service. They are attentive and responsive."
Chambers USA 2022
(New York, Litigation: Securities) survey response
Experience
Insights
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Publication | April 2024