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Securities Litigation

Kasowitz regularly defends corporations, financial institutions, and directors and officers in securities actions brought by shareholders, debt holders and others.  Our attorneys also actively represent corporations, financial institutions, and high-net-worth individuals in pursuing securities law violations by issuers and other market participants.

Notable representations include: 

  • Federal Housing Finance Agency (“FHFA”), as conservator for Fannie Mae and Freddie Mac, in several actions in federal and state courts against numerous financial institutions and individuals.  The lawsuits sought rescission or damages from the defendants for, among other things, defendants’ misrepresentations concerning pools of mortgage loans that underlie residential mortgage-backed securities issued and securitized by the defendants and sold to Fannie Mae and Freddie Mac.  After prevailing on critical pre-trial issues, FHFA settled the actions brought by Kasowitz for over $2 billion, including a $1.25 billion settlement with Morgan Stanley.
  • Comcast in defense of a series of securities and corporate governance actions arising from the collapse of Excite@Home, once one of the most recognized internet portals.  Kasowitz secured a dismissal, in New York federal court, of the largest claim ever filed for disgorgement of short-swing profits pursuant to Section 16(b) of the Securities Exchange Act of 1934. 
  • Royal Bank of Canada ("RBC") in the securities fraud putative class actions instituted as a result of Enron's demise, alleging that RBC participated in Enron's fraud and assisted Enron in misusing various complicated transactions and financial structures so as to overstate Enron's earnings and financial health, including the Newby class action.  The firm successfully obtained the dismissal of all claims against RBC. 
  • Metropolitan Life Insurance Company and Lloyds TSB Bank plc in their actions against investment banks, indenture trustees, rating agencies and accountants, asserting violations of federal securities and New Jersey Blue Sky laws relating to their losses on holdings of more than $250 million of financial instruments issued by National Century Financial Enterprises, Inc., which has been described by the FBI as the largest ever corporate fraud case involving a privately held company.
  • The Hartford Life Insurance Company in its securities fraud action against Bank of America in the federal multi-district litigation relating to the collapse of Parmalat Finanziaria S.p.A., asserting claims for violation of Sections 10(b) and 20(a) of the Exchange Act.  This case was settled favorably as it neared trial.
  • Stonepath Group, Inc. in defense of a securities fraud action filed by purchasers of Stonepath’s preferred stock.  The action resulted in the seminal decision by the Second Circuit Court of Appeals concerning the standard of reasonable reliance in 10(b)(5) cases. 
  • Murray Capital Management in its securities fraud action against Exide Technologies, asserting Section 10(b) and 20(a) claims relating to Exide’s securities offering.  After the court dismissed the initial complaint prepared by another firm, Kasowitz was retained to prepare an amended complaint, and it successfully defeated Exide’s motion to dismiss that amended complaint, resulting in a confidential settlement. 
  • The Special Committee of the Board of Directors of video-game maker Take-Two Interactive Software in connection with an internal investigation into potential stock option backdating as well as a shareholder derivative action alleging insider-trading and other misconduct. 

Highlights 

Chambers USA 2016 Ranks Kasowitz as Leading Securities Firm

Chambers USA 2016 has again ranked Kasowitz as a leading law firm in the area of Securities: Institutional Plaintiffs.  Clients described partner Marc Kasowitz as a "go-to bet-the-company litigator," partner Aaron Marks as providing "spectacular and very pragmatic advice" on high-stakes commercial disputes and partner Daniel Fetterman as "a genuinely gifted trial lawyer and very good negotiator."  To read more, please click here.


Legal 500 US 2016 Recommends Kasowitz Securities Litigation Group

Legal 500 US 2016 has again recommended Kasowitz, highlighting the firm as providing the most cutting edge and innovative advice to corporate counsel in securities litigation cases nationwide.  To read more, please click here.


U.S. News and Best Lawyers 2017 Ranks Kasowitz as a Best Law Firm

U.S. News - Best Lawyers has ranked Kasowitz as a "Best Law Firm" in the area of Litigation - Securities.  To read more, please click here.