Securities » Securities Lawsuits

Securities Lawsuits

Enforcing Investors' Rights

Ensuring investors are treated fairly and have their rights respected is important. Girard Gibbs’ securities attorneys have developed a reputation for doing just that. We have brought numerous successful class actions on behalf of victims of various forms of securities fraud, ranging from accounting fraud to material misrepresentations.

If you believe that you or a loved one has been the victim of securities fraud, please contact us by filling out the form to your right or calling us toll-free at (866) 981-4800 for a free and confidential consultation with one of our securities attorneys.

To learn more about our previous successes in securities lawsuits, please see below.

Sears Derivative Settlement


In the summer of 2015, Girard Gibbs and other law firms filed derivative lawsuits (lawsuits brought by shareholders on behalf of a corporation) against current and former Sears directors. The lawsuits alleged that these directors breached their fiduciary duties to Sears by selling Sears real estate for a price that was below fair market value. The lawsuits also brought allegations against the entity that purchased the Sears real estate and a separate entity, which aided in the purchase. The lawsuits were consolidated in the fall of 2015.

Alexion Soliris Fraud Investigation


Girard Gibbs is investigating potential claims against the board of directors of Alexion Pharmaceuticals, Inc. (ALXN) for possible breaches of fiduciary duty and other violations of state law arising out of allegedly improper sales practices at the company.

Triad Advisors & Securities America Advisors Lawsuit Investigation


Girard Gibbs is investigating whether certain financial advisory firms are collecting excessive fees in connection with the placement of investor funds into mutual funds. Recent reports indicate that certain financial advisors recommend mutual funds that will maximize their own fees instead of minimizing client costs, resulting in potential breaches of fiduciary duty.

JBS SA Investigation


Girard Gibbs LLP is investigating a potential action against JBS SA (“JBS”) arising out of JBS’s recent announcement of a failed reorganization. JBS’s reorganization plan would have spun off the company’s international business, with headquarters in Ireland and a listing on the New York Stock Exchange. Following JBS’s announcement, JBS’ American Depository Receipt (“ADR”) shares plunged 13% and remain down.

ZTO Express Securities Lawsuit Investigation


Girard Gibbs LLP is investigating potential claims against ZTO Express (ZTO) in connection with its October 26, 2016 initial public offering, which in raising $1.4 billion, qualifies as the largest U.S. IPO of the year.

ARC Retail Centers-AFIN Merger Investigation


Girard Gibbs LLP is investigating potential claims against the Board of Directors of American Finance Trust, Inc. (“AFIN”) in connection with its September 7, 2016 announcement that it had approved a merger agreement with American Realty Capital-Retail Centers of America, Inc. (“ARC Retail Centers”). Our securities attorneys are speaking with investors and looking for more information concerning potential breaches of fiduciary duty and other violations of state and federal law by AFIN’s board relating to approval of the transaction.

Platinum Partners LP Hedge Fund Investigation


Girard Gibbs LLP has opened a fraud investigation into two Platinum Partners LP hedge funds: the Platinum Partners Value Arbitrage Fund and the Platinum Partners Credit Opportunities Fund.

Merrill Lynch Strategic Return Notes Investigation


Girard Gibbs is investigating potential claims on behalf of investors who sustained losses arising out of the purchase of Merrill Lynch strategic return notes. Since the time of their creation, strategic return notes have lost 95% of their value.

Jay Peak, Inc. Securities Lawsuit Investigation


Girard Gibbs LLP is investigating possible claims against Jay Peak, its owners, affiliates and advisors for potential violations of state and federal securities laws. This investigation arises out of an allegedly fraudulent scheme in which Jay Peak is reported to have misused more than $200 million obtained from investors intended to fund construction of a Vermont ski resort and a Vermont biomedical facility.

Subprime Auto ABS Investigation


Girard Gibbs LLP is investigating claims against a number of issuers of subprime auto asset-backed securities (ABS) for potential violations of state and federal securities laws.

RMR Group (GOV, HPT, SIR, SNH) Securities Lawsuit Investigation


Girard Gibbs is investigating the boards of trustees at Government Properties Income Trust (NYSE: GOV), Hospitality Properties Trust (NYSE: HPT), Select Income REIT (NYSE: SIR), and Senior Housing Properties Trust (NYSE: SNH)) for possible breaches of fiduciary duty and other potential violations relating to the recent formation of RMR Group, Inc. (NYSE: RMR).

Shareholder Alert: Girard Gibbs Announces Third Avenue Focused Credit Fund Class Action


Girard Gibbs LLP announces that a securities class action has been filed in the United States District Court for the Central District of California on behalf of those who purchased shares of the Third Avenue Focused Credit Fund (the “Fund”) (NASDAQ: TFCIX (Institutional shares), TFCVX (Investor shares)), between March 1, 2013 and December 10, 2015(the “Class Period”).

United Development Funding IV Lawsuit


Our attorneys are investigating a class action lawsuit on behalf of purchasers of the securities of United Development Funding IV (Nasdaq: UDF) between June 4, 2014 and December 10, 2015.

Nationwide Insurance Annuity Investigation


Girard Gibbs LLP is investigating potential securities law violations by Nationwide Life Insurance Company. The investigation is into whether Nationwide processed purchase and redemption orders for its variable annuity products at the price on the day after the order was received. Investors that purchased a Nationwide Life Insurance variable annuity are encouraged to call securities lawyer Jesse D. Gossett at (866) 981-8400 or by email at jdg@girardgibbs.com

Saba “Taking Private” Merger Investigation


Girard Gibbs LLP is investigating potential claims against the Board of Directors of Saba Software Inc. (“SABA”) for possible breaches of fiduciary duty and other violations of state law.

Safeway (SFW) Shareholders Class Action Lawsuit


Girard Gibbs LLP represents various institutional shareholders of Safeway, Inc. in a class action lawsuit related to Cerberus Capital Management’s proposed acquisition of Safeway Inc.  The lawsuit has been filed in Delaware Court of Chancery against Safeway, its officers and directors, Cerberus and various Cerberus affiliates.

Cole III REIT Securities Lawsuit


On March 25, 2013, Girard Gibbs and co-counsel filed a class action lawsuit on behalf of investors in Cole Credit Property Trust III (“CCPT III”) for breaches of fiduciary duties owed to CCPT III shareholders.

Wells Fargo Bank / KH Funding Class Action Lawsuit


Girard Gibbs represents investors who held Series 3 Senior Debt Securities issued by KH Funding Company (referred to here as “Series 3 Notes”) as of February 5, 2010. KH Funding is a Maryland corporation that issued interest-bearing debt securities such as the Series 3 Notes and acquired, originated and serviced mortgage loans. KH Funding issued the Series 3 Notes pursuant to an indenture under which Wells Fargo Bank agreed to act as indenture trustee to oversee repayment of the Series 3 Notes and to protect the interests of Series 3 Noteholders in the event of default by KH Funding.

Apple REIT Non-Traded Class Action Lawsuit


Girard Gibbs and co-counsel filed a consolidated class action complaint in February 2012 on behalf of investors who purchased shares of Apple REIT Six, Apple REIT Seven, Apple REIT Eight, Apple REIT Nine, and Apple REIT Ten through David Lerner Associates.  The Apple REITs are non-traded real estate investment trusts that invest primarily in extended stay and limited service hotels. David Lerner Associates, the exclusive seller of the Apple REIT investments, collects 10% of every share sold as commissions and expense reimbursements. Apple REITs Six, Seven, Eight, and Nine are closed to new investors, and Apple REIT Ten is still open to new investors.

Sallie Mae Securities Class Action Lawsuit


Girard Gibbs serves as lead counsel representing investors of SLM Corporation (“Sallie Mae”) in litigation alleging that Sallie Mae, the leading provider of student loans in the United States, misled the public about its financial performance in order to inflate the company’s stock price.

WorldMark Derivative Lawsuit – Directors’ Settlement


In 2007, Girard Gibbs represented five WorldMark Owners in filing a derivative lawsuit (a lawsuit brought by a shareholder on behalf of a corporation) against former and current WorldMark directors. The lawsuit was brought on behalf of WorldMark and all other WorldMark members (or “Owners”), alleging that these directors breached their fiduciary duties to WorldMark and to the Owners by taking actions that benefit the developer, Wyndham Resort Development Corporation, rather than Owners themselves. The complaint also alleged that the directors, as a majority of WorldMark’s Board, took actions and enacted policies that affect WorldMark elections and inhibit member communications.

Provident Royalties Class Action Lawsuit


On July 25, 2011, a Federal District Court in Dallas, Texas granted final approval of an $80 million class action settlement on behalf of Securities America customers who purchased private placement investments in Medical Capital Notes and Provident Royalties, both of which were revealed to be Ponzi schemes. Investors will recover an average of over $30,000 per person through the settlement.

Winstar Securities Litigation


Girard Gibbs represents Jefferson Insurance Company and 24 other related institutional investors in a private action pending in the United States District Court for the Southern District of New York against the former officers and directors of Winstar Communications, Inc. and Winstar’s former auditors, Grant Thornton LLP, arising out of Winstar’s bankruptcy.

Reserve Primary Fund Lawsuit


On September 16, 2008, it was announced that Reserve Primary Fund (RFIXX), one of the largest money market mutual funds, put a seven-day freeze on investor redemptions after the net asset value of its shares “broke the buck,” falling below $1. The fund is owned by Reserve Management Corporation and held approximately $785 million in Lehman Brothers commercial paper and medium-term notes, which was revalued as worthless by the fund’s board on Tuesday, following Lehman’s bankruptcy filing.

Qwest Communications Securities Lawsuit


Girard Gibbs served as co-counsel representing the California State Teachers’ Retirement System (CalSTRS), the nation’s third-largest public pension fund, in an opt-out securities fraud lawsuit arising out of the financial collapse of Qwest Communications International, Inc. The lawsuit alleged that CalSTRS lost approximately $150 million as a result of defendants’ violations of state and federal securities laws.

Prison Realty Securities Class Action


Girard Gibbs was co-lead counsel in this securities class action brought on behalf of investors against a real estate investment trust and its officers and directors, following defendants' alleged false statements made in the context of a merger between Corrections Corporation of America and CCA Prison Realty Trust and subsequent operation of the merged entity. On February 13, 2001, the Court granted final approval to a settlement for over $104 million in cash and stock.

Oppenheimer AMT-Free NY Municipals Fund Lawsuit


A class action lawsuit has been filed on behalf of investors of the Oppenheimer AMT-Free New York Municipals Fund. The class action complaint alleges that the Fund failed to properly disclose its investments in inverse floaters, which exposed it to a much greater risk of price declines in the value of its portfolio in the event of illiquidity in the market for municipal securities. Investors who purchased class A, class B or class C shares (OPNYX, ONYBX, ONYCX) between May 21, 2006 and October 21, 2008 may be affected.

Oppenheimer California Class Action Lawsuit


Girard Gibbs LLP has been investigating Oppenheimer California Municipal Fund (the “Fund”) for potential violations of the federal securities laws. Investors who purchased A shares (Ticker Symbol: OPCAX), B shares (Ticker Symbol: OCABX) and/or C shares (Ticker Symbol: OCACX) of the Fund between September 27, 2006 and November 28, 2008 may be affected.

Medical Capital Holdings Class Action Lawsuit


Girard Gibbs represents investors who purchased private placement notes of Medical Provider Financial Corp. III, Medical Provider Financial Corp. IV, Medical Provider Funding Corp. V and/or Medical Provider Funding Corp. VI (the “Medical Capital Notes”) on or after September 18, 2006. The lawsuit names as defendants Cullum & Burks Securities, Inc., Securities America, Inc., Ameriprise Financial, Inc., and CapWest Securities, Inc., who offered and sold the Medical Capital Notes to investors.

i2 Technologies Class Action Lawsuit


Girard Gibbs, acting as co-lead counsel on behalf of lead plaintiff the Kansas Public Employees’ Retirement System, obtained a settlement of $84.85 million with i2 Technologies and present and former executives Sanjiv S. Sidhu, Gregory A. Brady and William M. Beecher. In October 2004, the United States District Court for the Northern District of Texas granted final approval to the settlement which also required i2 to adopt a series of corporate-governance reforms.

American Express Class Action Lawsuit


On July 13, 2007, U.S. District Judge Deborah A. Batts in the Southern District of New York granted final approval to a $100 million settlement of the securities class action and related claims against American Express Financial Advisors. The settlement covers clients of (“AEFA”) who purchased financial advisory services or financial advice (such as a financial plan) and/or mutual funds in the American Express family of mutual funds between March 10, 1999 and February 9, 2004.

MF Global Class Action Lawsuit


Girard Gibbs is conducting a legal investigation into the rights of investors in MF Global Holdings, Inc.’s notes following the company’s recent 67% stock decline and news reports that it may have comingled clients’ funds in highly leveraged trading. Our investigation includes the following notes:

Auction-Rate Securities Class Action Lawsuits


Girard Gibbs and its associated co-counsel served as lead counsel in a number of lawsuits filed in connection with the collapse of the $330 billion auction-rate securities market.  The firm led cases against such banks as: UBS, Deutsche Bank, Bank of America, E*Trade, Raymond James and Merrill Lynch.

CalSTRS Wal-Mart Derivative Lawsuit


Girard Gibbs is representing the California State Teachers’ Retirement System (CalSTRS), the nation’s second-largest public pension fund, in a lawsuit against current and former executives and board members of Wal-Mart Stores, Inc. (NYSE: WMT).

Peregrine Financial Group Lawsuit


Girard Gibbs LLP and co-counsel have helped deliver settlements worth more than $75 million on behalf of former customers of Peregrine Financial Group, Inc., in litigation against U.S. Bank, N.A., and JPMorgan Chase Bank, N.A., arising from Peregrine’s collapse in July 2012. The lawsuit alleges that both banks breached legal duties by allowing Peregrine’s owner to withdraw and put millions of dollars in customer funds to non-customer use.

Lehman Brothers/UBS Lawsuit


Girard Gibbs LLP represents investors who purchased certain Lehman Brothers structured products (including “principal-protection notes”) in a class action lawsuit against UBS Financial Services, Inc. and Lehman Brothers’ directors and officers.

H&R Block Express IRA Class Action Lawsuit


Girard Gibbs served as lead counsel in a case against H&R Block alleging that the tax firm misled consumers in the marketing and sale of its “Express IRAs”. The lawsuit alleged that H&R Block failed to adequately explain the Express IRA’s financial consequences and limitations and that H&R Block knew that the Express IRA was an unsuitable investment for most of its clients.