The Complexities of Securities Litigation
Securities litigation can arise out of a variety of circumstances; and, getting to the issues at the heart of these legal disputes can often be challenging. At Burford Perry LLP, we regularly represent individuals and companies involved in securities litigation. Our depth of experience allows us to use innovative strategies to obtain successful outcomes for our clients.
One of our successful outcomes for a securities litigation client included representing a former CEO. The case was brought by investors who alleged they bought unregistered securities that the CEO’s company sold in the form of fractional interests in life insurance policies. This case was unique in that a bankruptcy trustee joined the investors in the lawsuits claiming the CEO had committed wrongdoing. Ordinarily, companies would defend claims against their CEO; however, the bankruptcy trustee had taken control of the company amid a bankruptcy and chose to pursue action against the CEO.
The investors’ claims and the bankruptcy trustee’s claims on behalf of the company were combined into a single lawsuit, which allowed the CEO’s privileged communications to be used by investors in their lawsuit against the CEO. To complicate matters further, there were simultaneous proceedings against the CEO and company by the Securities Exchange Commission (SEC). The investors and bankruptcy trustee sought approximately $750 million in damages.
Burford Perry LLP attorneys pointed out the substantial limitations on fraud and breach of fiduciary duty claims regarding the Texas Uniform Fraudulent Transfer Act (TUFTA). The case went to trial and our attorneys eventually succeeded in obtaining a final judgment of only $19 million for our client.
Securities Litigation Is Rarely Black and White
Securities litigation issues are much more complex than other types of litigation. Securities law is incredibly nuanced and hyper-technical. For individuals facing securities lawsuits, it is imperative to work with only experienced securities lawyers. The attorneys at Burford Perry LLP have over sixty-five years of combined experience handling the most complex legal issues. Contact us today to schedule an appointment with one of our securities litigation attorneys.