Securities & Financial Fraud
In re Merrill Lynch & Co., Inc. Securities, Derivative and ERISA Litigation – Current and former employees filed a case against Merrill Lynch under the Employee Retirement Income Security Act (ERISA) for losses suffered as a result of 401k investments in company stock. A $75 million dollar settlement was approved in August 2009.
Minnesota Corn Processors Litigation – Farmer/shareholders achieved a $5.75 million settlement shortly before trial. The farmers brought breach of fiduciary claims against MCP officers related to their improper communications with competitor Archer Daniels Midland (ADM), and an ultimate sale of the company to ADM that included lavish golden parachute compensation packages for those officers.
Morgan Keegan Securities Litigation – Investors brought a series of lawsuits against the defendants, including Regions Financial, Regions Bank, Morgan Keegan & Company, Inc., Morgan Asset Management, and PricewaterhouseCoopers, Inc., alleging violations of federal securities laws, breach of fiduciary duty and other state law causes of action that resulted in three open-end mutual funds to tank in 2007. In January 2015, Regions Financial Corp. agreed to pay $125 million to end both a putative class action and shareholder derivative lawsuits.
Wells Fargo Securities Lending – $62.5 million settlement reached, two days before trial. The City of Farmington Hills’ pension fund brought this case on behalf of itself and more than 60 other funds/investors. The Fund–and a certified class–sought to recover investment losses caused by Wells Fargo’s misrepresentations about its securities lending program and its mismanagement of the program that put investors’ money into high risk funds, in violation of program’s policies. One of the largest recoveries achieved in a securities lending case stemming from the 2008 financial crisis.
Citigroup Litigation – Zimmerman Reed and Robbins Geller Rudman & Dowd LLP represented a large corporation in an action against Citigroup Inc., alleging fraud and negligent misrepresentation in connection with the sale of mortgage-backed securities. The parties successfully resolved all of the claims relating to this action in 2014.
Deutsche Bank Litigation – Zimmerman Reed, along with Robbins Geller Rudman & Dowd LLP represented a large corporation in an action against Deutsche Bank AG, alleging fraud, aiding and abetting, and negligent misrepresentation in connection with the sale of mortgage-backed securities and collateralized debt obligations. The parties successfully resolved all of the claims relating to this action in 2014.
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