Securities Class Action and Shareholder Derivative Litigation

Troutman Sanders’ Securities Litigation attorneys understand the numerous complications that arise within an organization and in the public eye as a result of securities class actions and shareholder derivative litigation. We provide a strong, effective defense of our clients in complex matters heard before federal and state courts throughout the United States. Our goal is to resolve disputes in a quick and efficient manner, while providing strategies that protect professional reputations and achieve the business objectives of public companies, individual directors and officers, underwriters, and auditors.

We have extensive experience litigating claims brought under Sections 10(b), 14(a), and 16 of the Securities Exchange Act of 1934 and Sections 11 and 12 of the Securities Act of 1933. We also frequently defend tag-along ERISA class actions and parallel state law derivative actions asserting breaches of fiduciary duties.

Additionally, we counsel our clients on a variety of related corporate governance issues, including responding to shareholder derivative demands and shareholder inspection demands.

  • Defended a financial holding company and its officers and directors in: (i) a consolidated putative class action alleging violations of the Securities Exchange Act of 1934, Section 10 and Rule 10b-5; (ii) a putative class action asserting Section 11 and Section 12 claims under the Securities Act of 1933 in connection with a Trust Preferred Securities Offering; and (iii) shareholder derivative lawsuits alleging breaches of fiduciary duties, deficient internal controls, waste of corporate assets and unjust enrichment. In each case, the trial court granted the defendants’ motions to dismiss.
  • Defended a national consumer financial services provider and certain of its officers and directors in: (i) a consolidated putative class action alleging violation of the Securities Exchange Act of 1934; and (ii) shareholder derivative litigation alleging breach of fiduciary duty in connection with alleged underlying unlawful activity. In each case, pre-trial motions to dismiss were granted.
  • Defended a national homebuilder and certain of its officers and directors in: (i) a consolidated putative class action alleging violations of the Securities Exchange Act of 1934; (ii) derivative lawsuits alleging breach of fiduciary duties, abuse of control, waste of corporate assets and unjust enrichment; and (iii) a consolidated putative class action alleging violations of the Employee Retirement Income Security Act (ERISA) with respect to the company’s 401(k) Plan. Each case was either dismissed on pre-discovery motions or settled on favorable terms.
  • Defended the former president, chief executive officer and chairman of the board of a national home improvement retailer in: (i) a federal securities fraud class action; (ii) shareholder derivative litigation; and (iii) an ERISA class action. Each case was either dismissed on pre-trial motions or settled on favorable terms.
  • Defended the alleged controlling shareholders in a securities fraud class action alleging accounting fraud and asserting claims under the Securities Exchange Act of 1934 and the Securities Act of 1933. The trial court granted the defendants’ motions to dismiss, in whole or in part, and the remaining claims were settled on favorable terms.
PrintPDF

Contact