The Consumer Fraud Section is focusing on cases involving securities fraud. Our practice surrounding securities has expanded to include shareholder derivative litigation, securities fraud class actions, municipal bond insurance litigation and individual investor claims.
This section is one of the national leaders in the Regions Morgan Keegan litigation. We alleged that RMK misrepresented certain proprietary bond funds as safe, low-risk investments, when in reality the funds were tied to very high-risk sub-prime mortgage securities which devalued the bond funds in excess of 70% in a very short period of time. We are handling large individual and institutional investor claims against RMK.
We are also involved in claims against the Stanford Financial Group. Stanford has allegedly committed one the largest Ponzi schemes in history. Stanford and its subsidiaries have caused losses in excess of $8 billion dollars to clients who invested in certificates of deposit and other more traditional securities. We represent individuals who invested large sums of money with Stanford. Additionally, we have moved to intervene as lead counsel in the class action litigation being brought against the Stanford entities.
We are investigating claims for various public entities (such as municipalities, public universities and public hospital systems) against municipal bond insurance companies. These claims involve the purchase of surety bond insurance coverage from the insurance companies by public entities who issue municipal bonds to raise capital. We allege the bond insurers inflated and misrepresented their financial stability by hiding the fact they had large holdings in the sub-prime mortgage structured security market. These insurers charged millions of dollars to public institutions who purchased their insurance coverage. The coverage was supposed to allow the public institutions to issue bonds at the best rates possible. When the subprime mortgage market collapsed in 2008, the bond insurance became worthless and caused hundred’s of millions of dollars in damage to cities, universities and hospitals.
Our section also continues to investigate and monitor claims against corporations who have intentionally and/or negligently caused the devaluation of their stock price to the detriment of shareholders. Our firm is investigating several claims against major corporations in the form of shareholder derivative actions.
If you feel you have a claim related to securities fraud, contact us today for a no-cost, no-obligation evaluation of your case by filling out the brief questionnaire.