Securities Fraud Litigation

Securities Fraud Cases in Securities & Consumer Fraud Practice Group

Securities fraud is an increasingly widespread problem for individual and institutional investors. As recent headlines demonstrate, shareholders are too often the most severely affected victims of financial mismanagement and manipulation by corporate executives and the professionals who assist them.

Common securities fraud schemes include:

  • Accounting fraud: recognizing false revenues or income, improperly accounting for costs and/or expenses, or creating shell entities to hide debt
  • Management malfeasance: insider trading or self-dealing, backdating or other manipulation of stock options, or improper inside loans

Class Action Lawsuits

Motley Rice litigates securities fraud class actions on behalf of investors who suffered significant financial losses because they bought stock at an artificially inflated price and lost investment value as the market responded to the disclosure of the fraud. Our securities team assists our clients in pursuing leadership roles in litigation when appropriate. Motley Rice has served as lead or co-lead counsel in numerous securities cases, including several class actions against Fortune 500 companies.

Opt-Out Litigation

Institutional investors who have suffered considerable damages on account of trading in a particular security may find it advantageous to opt out of the proposed securities fraud class action in order to bring an individual action to recoup their losses. Under certain circumstances, opt-out litigation may allow a shareholder to assert additional claims against corporate wrongdoers beyond those available to the putative class, and accordingly, in several recent securities fraud class actions, a number of large institutional investors have chosen to opt out and initiate their own lawsuits. Motley Rice regularly assists institutional investors evaluating their options in these contexts.

To learn more about securities fraud litigation or discuss a potential case or recently announced proposed class action settlement, contact attorney Bill Narwold by email or call 1.800.768.4026.