Securities Fraud

Securities fraud claims typically arise from misrepresentations or omissions of material fact in connection with the purchase or sale of securities, such as stocks or bonds. Federal and state securities laws and the common law all provide remedies to persons or entities harmed by such conduct, pursuant to a public policy of honest and complete disclosure of all material facts to investors. In addition, corporations and their shareholders are sometimes harmed by a breach of fiduciary duty by a company’s officers and directors, particularly where they act in their own interest instead of the interest of the company. In these situations, a derivative-type claim may be asserted by a shareholder.

The members of Hulett Harper Stewart LLP have extensive experience in the prosecution of all types of securities fraud litigation. We are co-counsel in two of the largest securities class actions currently ongoing. We represent large individual investors in a securities suit against WorldCom and a former subsidiary of WorldCom, which is partially settled. We also currently represent a bankruptcy trustee in a securities and negligence action against the former officers and directors of a public company and its auditors.

We have successfully prosecuted the following major securities cases:

  • A $127.5 million settlement arising from alleged broker kickbacks.
  • An action against two brokerage firms, whose representative stole over $40 million from our client’s account, for whom we obtained a full recovery.
  • A shareholder class action against the former officers and directors of First Security Corporation for alleged breach of fiduciary duty, settled for $29,950,000.
  • The firm played a significant role in prosecuting In re Broadcom Securities Litigation, No. SACV 01-275 (GLT) (MLGx) (C.D. Cal.), settled for $150,000,000.
  • The firm played an active role in prosecuting, with other firms, In re AOL Time Warner Securities Litigation, Case No. 02 MDL Docket No. 1500 (SWK) (S.D.N.Y.), settled for $2.5 billion.
  • A multi-million dollar arbitration for an individual who alleged he was defrauded in the sale of his company for stock in a public company.