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Practice Areas

Securities

Berman Tabacco is one of the country’s top providers of securities litigation services to institutional investors. Since passage of the Private Securities Litigation Reform Act of 1995 — a law that fundamentally changed the rules governing shareholder lawsuits — the firm has held leadership positions in more than 100 federal class actions, negotiating settlements in more than two-thirds of them.

We have become a leader in federal securities litigation because of our record of strong results, our decades of experience and our core philosophy of careful case selection. We typically recommend that our clients take legal action only if our thorough investigation uncovers suspicious facts supporting a strong inference of fraud and reasonable potential for a meaningful recovery.

Over the years, we have recovered billions of dollars for our clients and the classes they represented. In 2015, we received final settlement approval for two headline-grabbing cases stemming from the financial crisis. Berman Tabacco was sole lead counsel in IndyMac Mortgage-Backed Securities Litigation, which settled for $346 million – one of the largest private MBS recoveries on record and the largest, by far, of any case where the issuer bank was in bankruptcy. In the Fannie Mae II class action, we negotiated a $170 million settlement as co-lead counsel. Other newsworthy cases include a $750 million Xerox settlement, reached in 2009, and $294.9 million in settlements with Bear Stearns and its auditor approved in November 2012. As attorneys for the court-appointed bondholder representatives in the massive WorldCom securities litigation, we helped lawyers representing the lead plaintiff obtain settlements worth more than $6.13 billion.

Our securities experience is not limited to PSLRA cases. Over the years, we have successfully prosecuted derivative actions, opt-out actions, breach of fiduciary duty cases and large scale securities arbitrations. Many of these prosecutions have resulted in landmark rulings. For example, firm lawyers prosecuted a state law misrepresentation case that led not only to a plaintiffs’ jury verdict but also to the first reported opinion upholding a shareholder’s rights to pursue common law fraud claims arising out of their decision to retain securities as opposed to purchasing new shares. (See Gutman v. Howard Sav. Bank.) In another significant opinion, the California Court of Appeal held that federal law does not preempt state law claims for breach of fiduciary duty or unfair business practices by brokers in the execution of their clients’ trades. (See Roskind v. Morgan Stanley Dean Witter & Co.)

For a complete list of our securities cases, use the pull-down menu on the right. Select the "Securities" practice area in the second field, then click "Search."