Federal and state securities laws were enacted after the stock market crashed in 1929 and government investigations revealed widespread violations of investors trust through false and deceptive disclosures and manipulative practices by companies and individuals. These laws include the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisors Act of 1940.  Most states have adopted similar laws to govern the offering and sale of securities within the state.

A securities or investment fraud lawsuit typically alleges that a company, individual or brokerage firm solicited or managed securities investments in violation of federal or state securities laws, and rules established by the Securities and Exchange Commission and Financial Industry Regulatory Authority.  While securities fraud can arise in a number of contexts, the more frequent situations include insider trading, unauthorized stock trading and unsuitable investment recommendations by brokers, breaches of fiduciary duty, Ponzi schemes, misrepresentations in offering documents, accounting fraud and market manipulation.

Pritzker Levine LLP’s securities attorneys have successfully represented high net worth investors, state public pension funds, multi-national corporations and small businesses in individual, derivative and class action litigation.  These lawsuits seek to hold companies responsible for acts of misrepresentation, lack of disclosure, and other forms of securities fraud, recovering hundreds of millions of dollars in investment losses.  Our securities attorneys also have successfully represented investors in receivership actions, lawsuits and arbitrations involving fraudulent investment products and other investment scams, ranging from Ponzi schemes to non-traded REITS, Reg D offerings, alternative investments and more.

To learn how our securities attorneys can help you, or to discuss a possible securities claim, please contact Jonathan Levine at jkl@pritzkerlevine.com or call 415-805-8533 for a free consultation.

Cases

San Francisco Regional Center Receivership Action

Pritzker Levine represents a business partner and limited partner investors in a receivership action in California Superior Court who were defrauded by the general partner.  Pritzker Levine successfully obtained the appointment of a receiver and, working with the receiver, recovered at least $30 million of misappropriated investor funds.  The litigation is ongoing in federal court following intervention by the U.S. Securities and Exchange Commission.

SRA Funds Receivership Action

Pritzker Levine represents more than 130 investors in a federal receivership action brought by the U.S. Securities and Exchange Commission against a series of investment funds and their organizers.  Pritzker Levine was retained to represent the interests of the fund investors and to advocate for an alternate distribution plan more favorable to the investors’ interests.  As a result of the work done by the firm, the District Court ultimately adopted a distribution plan, over the objections of the SEC and the receiver, that incorporated the key elements of the alternate plan put forward by Pritzker Levine.  The litigation is ongoing. 

In re Apple Derivative Litigation

Pritzker Levine represents Apple shareholders in derivative litigation against Apple’s senior executives and directors.  The lawsuit alleges that Apple’s senior executives and directors breached their fiduciary duties to Apple and its shareholders by allowing the Company’s CEO to make certain false and misleading statements about Apple, its financial condition, business prospects and future results.  The litigation is ongoing.

In re Lehman Brothers Equity/Debt Securities Litigation

Jonathan Levine, as one of the Class Counsel, represented a certified class of retail investors in Lehman-issued structured products sold by UBS Financial Services, Inc.  The plaintiffs alleged that UBS violated federal securities laws by selling the structured products pursuant to offering documents that misrepresented Lehman’s financial condition and failed to disclose that the “principal protection” feature of many of the notes depended upon Lehman’s solvency.  The case resulted in a settlement that established a $120 million fund to resolve the claims.

In re SLM Corporation Securities Litigation

Jonathan Levine, as one of the Lead Counsel, represented a certified nationwide class of investors of SLM Corporation (“Sallie Mae”) in litigation alleging that Sallie Mae, the leading provider of student loans in the U.S., misled the public about its financial performance in order to inflate the company’s stock price.  The case resulted in a settlement that established a $35 million fund to resolve investors’ claims.

In re Winstar Communications Securities Litigation

Jonathan Levine represented Allianz of America, Inc., Fireman’s Fund and other large private institutional investors in federal securities litigation against the senior executives of Winstar Communications Inc., Lucent Technologies Inc. and Grant Thornton LLP, arising out of plaintiffs’ investments in Winstar Communications, Inc.  The case was resolved through several confidential settlements, the last one achieved on the eve of trial.

In re American Express Financial Advisors Securities Litigation

As one of the Co-lead Counsel, Jonathan Levine represented a nationwide class of individuals who bought financial plans and invested in mutual funds from American Express Financial Advisors.  The case alleged that American Express steered its clients into underperforming “shelf space funds” to reap kickbacks and other financial benefits.  The case resulted in a cash settlement of $100 million, in addition to other relief.

Rosen v. Macromedia, Inc.

As Co-lead Counsel, Jonathan Levine represented a certified nationwide class of investors of Macromedia in litigation alleging that the company and certain of its executives misled the public about its financial performance and products in order to inflate its stock price.  The case resulted in a settlement that established a $48 million fund to resolve investors’ claims.

In re Gupta Corporation Securities Litigation

Jonathan Levine, as Co-lead Counsel, represented a certified nationwide class of investors of Gupta Corporation in litigation alleging that Gupta and its senior-most executives misled the public about the company’s financial performance in order to inflate the company’s stock price.  The case resulted in a settlement that established a $15 million fund to resolve investors’ claims.

Provenz v. Miller

Jonathan Levine, as Co-lead Counsel, represented a certified nationwide class of investors of MIPS Technologies, Inc. in litigation alleging that MIPS and certain of its executives misled the public about its financial performance and products in order to inflate the company’s stock price.  The case resulted in a settlement that established a $15 million fund to resolve investors’ claims.