Securities Fraud

“the most prominent securities class action attorneys in the country” 

– Hon. Melinda Harmon, United States District Judge, In re Enron Corp. Sec., Derivative & “ERISA” Litig.

Robbins Geller is a leader in the fight to protect investors from corporate securities fraud. The Firm has represented more institutional investors, pension funds and financial institutions in securities litigation than any other law firm in the United States. Robbins Geller has recovered tens of billions of dollars for investors and has established corporate governance changes, helping to improve the financial markets for investors worldwide.

Robbins Geller is recognized for its formidable securities team, which includes dozens of former federal and state prosecutors. Additionally, the Firm brings a collective expertise to each securities case with its in-house investigators, damage analysts, economists and forensic accountants.

The Firm’s reputation for excellence has been repeatedly noted by the courts, resulting in the appointment of its attorneys to leadership roles in some of the largest securities cases in the United States.

The Firm’s cases have included:

  • In re Enron Corp. Sec. Litig., No. H-01-3624 (S.D. Tex.).  Robbins Geller attorneys and lead plaintiff The Regents of the University of California aggressively pursued numerous defendants, including many of Wall Street’s biggest banks, and successfully obtained settlements in excess of $7.3 billion for the benefit of investors.  This is the largest aggregate class action settlement not only in a securities class action, but in class action history.
  • Jaffe v. Household Int’l, Inc., No. 02-C-05893 (N.D. Ill.).  As sole lead counsel, Robbins Geller obtained a jury verdict on May 7, 2009, following a six-week trial in the Northern District of Illinois, on behalf of a class of investors.  On October 17, 2013, United States District Judge Ronald A. Guzman entered a judgment of $2.46 billion – the largest judgment following a securities fraud class action trial in history – against Household International (now HSBC Finance Corporation) and three of its former top executives.  Since the enactment of the PSLRA in 1995, trials in securities fraud cases have been rare.  Only a handful of such cases have gone to verdict since the passage of the PSLRA.
  • In re UnitedHealth Grp. Inc. PSLRA Litig., No. 06-CV-1691 (D. Minn.).  In the UnitedHealth case, Robbins Geller represented the California Public Employees’ Retirement System (“CalPERS”) and obtained an $895 million recovery on behalf of the UnitedHealth shareholders. Former CEO William A. McGuire paid $30 million and returned stock options representing more than three million shares to the shareholders, bringing the total recovery for the class to over $925 million. This is the largest stock option backdating recovery in history, and is more than four times larger than the next largest options backdating recovery.  Additionally, Robbins Geller obtained unprecedented corporate governance reforms, including election of a shareholder-nominated member to the company’s board of directors and a mandatory holding period for shares acquired by executives.
  • Alaska Elec. Pension Fund v. CitiGroup, Inc. (In re WorldCom Sec. Litig.), No. 03 Civ. 8269 (S.D.N.Y.).  Robbins Geller attorneys represented more than 50 private and public institutions that opted out of the class action case and sued WorldCom’s bankers, officers and directors, and auditors in courts around the country for losses related to WorldCom bond offerings from 1998 to 2001.  The Firm’s attorneys recovered more than $650 million for their clients, substantially more than they would have recovered as part of the class.
  • Luther v. Countrywide Fin. Corp., No. 12-cv-05125 (C.D. Cal.).  Robbins Geller attorneys secured a $500 million settlement for institutional and individual investors in what is the largest RMBS purchaser class action settlement in history, and one of the largest class action securities settlements of all time.  The unprecedented settlement resolves claims against Countrywide and Wall Street banks that issued the securities.  The action was the first securities class action case filed against originators and Wall Street banks as a result of the credit crisis.  As co-lead counsel Robbins Geller forged through six years of hard-fought litigation, oftentimes litigating issues of first impression, in order to secure the landmark settlement for its clients and the class.

Details and Additional Cases  ›
  • In re Wachovia Preferred Sec. & Bond/Notes Litig., No. 09-cv-06351 (S.D.N.Y.).  On behalf of investors in bonds and preferred securities issued between 2006 and 2008, Robbins Geller and co-counsel obtained a significant settlement with Wachovia successor Wells Fargo & Company and Wachovia auditor KPMG LLP.  The total settlement – $627 million – is the largest recovery under the Securities Act of 1933 and one of the 15 largest securities class action recoveries in history. The settlement is also one of the biggest securities class action recoveries arising from the credit crisis.  
  • In re Cardinal Health, Inc. Sec. Litig., No. C2-04-575 (S.D. Ohio).  As sole lead counsel representing Cardinal Health shareholders, Robbins Geller obtained a recovery of $600 million for investors.  At the time, the $600 million settlement was the tenth-largest settlement in the history of securities fraud litigation and is the largest recovery in a securities fraud action in the Sixth Circuit.
  • AOL Time Warner Cases I & II, JCCP Nos. 4322 & 4325 (Cal. Super. Ct., Los Angeles Cnty.).  Robbins Geller represented The Regents of the University of California and numerous domestic and international pension fundsin state and federal court opt-out litigation stemming from Time Warner’s disastrous 2001 merger with Internet high flier America Online.  After almost four years of litigation involving extensive discovery, the Firm secured combined settlements for its opt-out clients totaling over $629 million just weeks before The Regents’ case pending in California state court was scheduled to go to trial.  The Regents’ gross recovery of $246 million is the largest individual opt-out securities recovery in history.
  • In re HealthSouth Corp. Sec. Litig., No. CV-03-BE-1500-S (N.D. Ala.).  As court-appointed co-lead counsel, Robbins Geller attorneys obtained a combined recovery of $671 million from HealthSouth, its auditor Ernst & Young, and its investment banker, UBS, for the benefit of stockholder plaintiffs.  The settlement against HealthSouth represents one of the larger settlements in securities class action history and is considered among the top 15 settlements achieved after passage of the PSLRA.  Likewise, the settlement against Ernst & Young is one of the largest securities class action settlements entered into by an accounting firm since the passage of the PSLRA.
  • In re Dynegy Inc. Sec. Litig., No. H-02-1571 (S.D. Tex.).  As sole lead counsel representing The Regents of the University of California and the class of Dynegy investors, Robbins Geller attorneys obtained a combined settlement of $474 million from Dynegy, Citigroup, Inc. and Arthur Andersen LLP for their involvement in a clandestine financing scheme known as Project Alpha.
  • In re Qwest Commc’ns Int’l, Inc. Sec. Litig., No. 01-cv-1451 (D. Colo.).  In July 2001, the Firm filed the initial complaint in this action on behalf of its clients, long before any investigation into Qwest’s financial statements was initiated by the SEC or Department of Justice.  After five years of litigation, lead plaintiffs entered into a settlement with Qwest and certain individual defendants that provided a $400 million recovery for the class and created a mechanism that allowed the vast majority of class members to share in an additional $250 million recovered by the SEC.  In 2008, Robbins Geller attorneys recovered an additional $45 million for the class in a settlement with defendants Joseph P. Nacchio and Robert S. Woodruff, the CEO and CFO, respectively, of Qwest.
  • In re AT&T Corp. Sec. Litig., MDL No. 1399 (D.N.J.).  Robbins Geller attorneys served as lead counsel for a class of investors that purchased AT&T common stock.  The case charged defendants AT&T and its former Chairman and CEO, C. Michael Armstrong, with violations of the federal securities laws in connection with AT&T’s April 2000 initial public offering of its wireless tracking stock, the largest IPO in American history.  After two weeks of trial, and on the eve of scheduled testimony by Armstrong and infamous telecom analyst Jack Grubman, defendants agreed to settle the case for $100 million.
  • Silverman v. Motorola, Inc., No. 1:07-cv-04507 (N.D. Ill.).  The Firm served as lead counsel on behalf of a class of investors in Motorola, Inc., ultimately recovering $200 million for investors just two months before the case was set for trial.  This outstanding result was obtained despite the lack of an SEC investigation or any financial restatement.
  • In re Dollar General Corp. Sec. Litig., No. 01-CV-00388 (M.D. Tenn.).  Robbins Geller attorneys served as lead counsel in this case in which the Firm recovered $172.5 million for investors – the largest shareholder class action recovery ever in Tennessee.
  • Carpenters Health & Welfare Fund v. Coca-Cola Co., No. 00-CV-2838 (N.D. Ga.).  As co-lead counsel representing Coca-Cola shareholders, Robbins Geller attorneys obtained a recovery of $137.5 million after nearly eight years of litigation.
  • Schwartz v. TXU Corp., No. 02-CV-2243 (N.D. Tex.).  As co-lead counsel, Robbins Geller attorneys obtained a recovery of over $149 million for a class of purchasers of TXU securities.
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