Securities and Shareholder Litigation

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Securities

Securities and shareholder litigation defense for class actions, derivative suits, and SEC enforcement, protecting your company, directors, and officers when disclosures and stock performance come under attack.

Securities and shareholder litigation arrives with high stakes, a thicket of regulation, and reputational pressure on top of the legal exposure. We defend public companies, directors, and officers in securities class actions, shareholder derivative suits, and SEC enforcement matters, building a defense that holds up under the heightened pleading standards these cases demand.

Securities Class Actions

We defend securities fraud class actions that challenge your disclosures, accounting, or management statements after a stock drop. From the motion to dismiss through class certification and damages, we attack loss causation, scienter, and event-study assumptions, and we put real pressure on the plaintiffs' theory at each stage rather than waiting to negotiate from a position of weakness.

Shareholder Derivative Suits

Derivative claims often follow on the heels of a class action, with shareholders suing on the company's behalf and alleging that the board failed in its oversight duties. We defend these suits, press demand futility and business judgment defenses, and coordinate the derivative track with the underlying securities litigation so the two cases do not undercut each other.

SEC Enforcement Defense

An SEC inquiry can run alongside private litigation or stand on its own, and the choices you make early shape everything that follows. We represent companies and individuals in SEC investigations and enforcement proceedings, managing Wells submissions, testimony, and document production while protecting privilege and working toward a resolution that limits penalties and collateral consequences.

Director And Officer Defense

When the complaint names your directors and officers personally, the stakes get individual fast. We defend D&O exposure in securities and governance disputes, coordinate closely with your D&O insurers on coverage and consent rights, and watch for conflicts between what helps the company and what protects the individuals named. We keep each director and officer informed and protected while we run the broader defense for the company.

Frequently asked questions

A sharp stock drop after bad news, with plaintiffs claiming the company misled investors earlier. Restatements of financials, government investigations, and sudden executive departures are common catalysts because they suggest something earlier disclosure didn't reveal.

A material misstatement or omission, scienter (a wrongful state of mind), reliance, loss causation, and damages. Securities fraud claims also face heightened pleading standards, so the complaint has to allege specific facts up front, not just general accusations.

The Private Securities Litigation Reform Act, which Congress passed to curb meritless securities suits. It raises the pleading bar for fraud claims and imposes an automatic stay of discovery while a motion to dismiss is pending, so defendants aren't forced into expensive discovery before the court tests the complaint.

Directors and officers policies typically cover defense costs and settlements for these claims, but coverage depends on the specific terms and exclusions. Notify your insurers early and review the policy closely, since how you respond at the outset can affect whether coverage applies.

The SEC can investigate and bring civil enforcement actions seeking injunctions, civil penalties, and disgorgement of ill-gotten gains. In cases involving fraud, it can refer the matter to the Department of Justice for criminal prosecution.

These often run in parallel, and what you say or produce in one can affect the others. Coordinating the defense and carefully protecting privilege across all of them is essential, because a misstep in one proceeding can hand ammunition to the others.

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