Cohen Milstein

Successes

• Parmalat

  In this ongoing litigation, Cohen Milstein Sellers & Toll PLLC has successfully negotiated two partial settlements totaling approximately $90 million.  At the second partial settlement hearing, Judge Lewis A. Kaplan remarked that plaintiffs counsel ”did a wonderful job here for the class and were in all respects totally professional and totally prepared.  I wish I had counsel this good in front of me in every case.”  Our clients, four large European institutional investors, were appointed as co-lead plaintiffs and we were appointed as co-lead counsel.  Most notably, this case allowed us the opportunity to demonstrate our expertise in the bankruptcy area.  During the litigation, the company subsequently emerged from bankruptcy and we added “New Parmalat” as a defendant because of the egregious fraud committed by the now-bankrupt old Parmalat.  New Parmalat strenuously objected and Judge Kaplan of the Southern District of New York ruled in the class plaintiffs’ favor, a ruling which was affirmed on appeal.  This innovative approach of adding New Parmalat enabled the class to obtain an important additional source of compensation, as we subsequently settled with New Parmalat.

  Parmalat’s bankruptcy filing was the biggest corporate bankruptcy in Europe, and in December 2003, the U.S. Securities and Exchange Commission filed a suit charging Parmalat with “one of the largest and most brazen corporate financial frauds in history.”

• Deutsche Bank AG

  Cohen Milstein Sellers & Toll PLLC represented plaintiffs in a lawsuit which sought damages on behalf of individuals victimized by fraudulent tax schemes.  The suit, which was against Deutsche Bank AG, Bayerische Hypo Und Vereinsbank (HVB), Presidio Advisors LLC and certain related entities alleged that the defendants conspired with others, including the KPMG accounting firm, to sell what they falsely described as legitimate tax reduction strategies. 
  
  However, these were not legitimate tax reduction strategies, but were the illegal products of a fraudulent scheme designed only to enrich the conspirators.  As a result, individuals who purchased the tax products owed millions of dollars in back taxes, penalties and legal fees.
  

• LDK Solar

  Shortly before this case was scheduled to go to trial, Cohen Milstein secured a settlement of $16 million for investors who had purchased shares in LDK Solar Co Ltd., which are traded on the New York Stock Exchange.  The plaintiffs in the case argued that LDK had engaged in a fraudulent scheme to mislead investors by materially underreporting the company’s actual costs of production.  The substantial recover in this case is especially noteworthy because LDK, one of the world’s largest makers of solar panels, is a Chinese company and has virtually no assets in the United States and, as a practical matter, judgments under the U.S. securities laws are unenforceable in China.  Moreover, LDK’s auditor, a Chinese affiliate of one of the major international accounting firms, refused to cooperate in the discovery process, arguing that doing so would violate Chinese law.  During the course of this litigation Cohen Milstein reviewed hundreds of thousands of documents, many of them in Chinese, and took numerous witness depositions, most of them in Hong Kong. 

• In re Tyco Securities Litigation

  Cohen Milstein Sellers & Toll PLLC successfully negotiated an $11 million settlement on behalf of the Massachusetts Pension Reserves Investment Trust (PRIT).  The class litigation from which PRIT opted-out accused Tyco International Ltd. of inflating its profit by billions of dollars over several years.  By pursuing the case and opting out of the class action -- which understated the damages to the class and would have only resulted in a payment of between $2 million and $4 million -- Cohen Milstein was able to obtain a payment for the benefit of the Commonwealth of Massachusetts that was three to five times what PRIT otherwise would have received.

• Chicago Bridge and Iron

  Cohen Milstein was co-lead counsel for the plaintiff class in this securities fraud class action which alleged that Chicago Bridge & Iron Co., N.V. securities issued numerous materially false and misleading statements which caused CB&I’s securities to trade at artificially inflated prices as well as alleging that the Defendants sold millions of dollars worth of CB&I securities at artificially inflated prices.
  
  The Court denied Defendants’ motions to dismiss in their entirety.  Thereafter, while Plaintiffs’ motion for class certification was pending, the Parties entered into a Stipulation and Agreement of Settlement in which Defendants agreed to pay $10,500,000 in cash and enact certain corporate governance reforms.

• In re Globalstar Securities Litigation (Southern District of New York)

  Cohen Milstein Sellers & Toll PLLC, lead counsel for the plaintiff class, negotiated a $20 million settlement of this securities fraud lawsuit near the end of the second week of the trial in the case.  This is one of only a handful of securities class actions to go to trial since the passage of the Private Securities Litigation Reform Act of 1995.  It involved claims that defendants made misleading statements about projected revenue in Globalstar’s first year of business operations, one of the most difficult types of cases for plaintiffs to prove.  In preliminarily approving the settlement, Judge P. Kevin Castel remarked that plaintiffs’ counsel had “done a terrific job in presenting the case for the plaintiffs.”

• Converium/Scor Securities Litigation

  In re SCOR Holding (Switzerland) AG (F/K/A Converium Holding AG) Securities Litigation (Southern District of New York). 

  Case Update

  On January 17, 2012, Cohen Milstein, along with co-lead counsel, secured a landmark ruling in the historic Converium/SCOR securities class action (the first such case settled on a Trans-Atlantic basis), as the Amsterdam Court of Appeal declared binding the two international settlement agreements in the litigation -- an aggregate recovery of $58,400,000.  Please follow link to press release.

  Case Background

  Cohen Milstein Sellers & Toll PLLC, co-lead counsel for the plaintiff class, negotiated an $84.6 million settlement of this securities fraud lawsuit on behalf of US residents who purchased Converium shares on the SWX Swiss Exchange or purchased Converium ADSs on the NYSE during the Class Period, and foreign investors who purchased Converium ADSs on the NYSE during the Class Period.  The case involved claims that Converium, its officers and Converium's parent company Zurich Financial Services failed to disclose that Converium's maintained loss reserves in its Converium North America subsidiary were inadequate, and that as a result of the understatement of loss reserves, Converium's earnings and assets were materially overstated during the Class Period.
   
  A separate settlement on behalf of foreign investors who purchased Converium shares on the SWX Swiss Exchange during the Class Period is to be administered through the Stichting SCOR Securities Compensation Fund and is subject to approval by the Amsterdam Court of Appeals.

  Cohen Milstein's efforts have been led by partner Daniel S. Sommers.

• Corn Products International

  Cohen Milstein served as lead counsel for a class of investors who purchased Corn Products International, Inc. securities at artificially inflated prices during the Class Period.  The class alleged that Corn Products and certain of its executive officers violated federal securities laws because defendants knew but failed to tell investors about a host of problems plaguing the Company during the Class Period.
  
  The parties signed a Stipulation and Agreement of Settlement in May 2007 which provided for a settlement fund of $6.6 million.  The settlement was finally approved later that year.

• In re Lucent Technologies Securities Litigation (District of New Jersey)

  The class portion of the settlement in this massive securities fraud class action amounted to over $500 million in cash, stock and warrants and ranks as one of the largest securities class action settlements ever.  Cohen Milstein Sellers & Toll PLLC represented one of the co-lead plaintiffs in this action, The Parnassus Fund, a mutual fund based in San Francisco, California.

• Gilat Satellite Networks, Ltd.

  Cohen Milstein Sellers & Toll PLLC served as co-lead counsel in this case, which resulted in a settlement of $20 million.  The case involved Defendants’ recording of revenues in violation of GAAP and engaging in sham transactions to increase Gilat’s recorded revenues. 
  

• In re Merrill Lynch & Co., Inc. Research Reports Securities Litigation (Southern District of New York)

  As Co-Chair of the Plaintiff’s Executive Committee, Cohen Milstein Sellers & Toll PLLC negotiated a $125 million settlement of 21 class-action lawsuits against Merrill Lynch & Co. alleging that investors suffered massive loses by following its dishonest stock recommendations, including those from its former star technology analyst, Henry Blodget.  This settlement was granted final approval by the Court.  In doing so, Judge John F. Keenan commended "counsels' skillful and zealous representation over a six-year period," and found the "high quality of representation provided by Lead Counsel is evident from the extensive record of this case." 

• Mamma.com

  Cohen Milstein Sellers & Toll PLLC served as co-lead counsel in this case, which resulted in a settlement of $3.15 million.  The case involved a notorious Canadian stock swindler, Irving Kott, who was alleged to have secretly owned, influenced, and controlled the Company, including the price of the Company’s shares.
  

• In re Southmark Securities Litigation (Northern District of Texas)

  Cohen Milstein Sellers & Toll PLLC served as co-lead counsel in this case, which resulted in settlements valued at over $70 million.  Recoveries were obtained from the company’s former auditors, from claims made in Southmark’s bankruptcy proceedings, and from Securities and Exchange Commission proceedings involving Drexel Burnham Lambert and Michael Milken.

• Norman v. Salomon Smith Barney (Southern District of New York)

  As one of Plaintiffs’ Lead Counsel, Cohen Milstein Sellers & Toll PLLC negotiated a $50 million settlement of a class action lawsuit on behalf of customers of Salomon’s Guided Portfolio Management program.  The lawsuit alleged that, instead of acting in the best interests of its customers, Salomon invested their money in companies that would boost Salomon’s investment banking business.  Moreover, Salomon did not tell its customers that its securities analysts were compensated based on the investment banking business they generated. 

• Pozen, Inc.

  Cohen Milstein Sellers & Toll PLLC served as lead counsel in this case, which resulted in a settlement of more than $11.2 million.  The case involved Defendants’ artificially inflating the price of POZEN stock by concealing and denying the fact that POZEN’s potential product line of drugs designed for the treatment of migraine was not approvable by the Food and Drug Administration.

• In re Nextel Communications Securities Litigation (District of New Jersey)

  Cohen Milstein Sellers & Toll PLLC served as co-lead counsel in this case involving false and misleading statements made by defendants concerning Nextel’s technology and the role of Motorola, Inc. as an alleged control person of Nextel.  A settlement in this case, valued at $27 million dollars, was reached for the benefit of purchasers of Nextel securities.

• ProQuest

  Cohen Milstein represented a lead plaintiff in this securities fraud class action against ProQuest Company.  According to the complaint filed by the Plaintiffs, the Defendants knew or recklessly disregarded the true facts that were concealed from the public. The Plaintiffs alleged that, during the class period, ProQuest’s reported financial results were not accurate because the company lacked adequate internal controls and because its financial statements were not prepared in accordance with Generally Accepted Accounting Principles (GAAP).  The case was settled for $20 Million in November 2008.

• In re PSINet Inc. Securities Litigation (Eastern District of Virginia)

  Cohen Milstein Sellers & Toll PLLC played a key role in this case, which was complicated by PSINet’s filing for bankruptcy during the litigation.  Despite the bankruptcy filing the case was resolved by a settlement of almost $18 million.

• Sears

  Cohen Milstein served as lead counsel for the plaintiff class in this securities fraud action against Sears Roebuck & Co. (“Sears”).  While Plaintiffs’ motion for class certification was pending, the parties were able to reach an all cash settlement in the amount of $15,500,000.  The Firm believes this was an outstanding result.

• SeraCare

  Cohen Milstein served as co-lead counsel for the lead plaintiffs in this securities class action against SeraCare Life Sciences, Inc.  In September 2007, the Court approved a $3 million settlement with the individual defendants. The litigation is continuing against SeraCare’s auditors and the underwriters of the secondary offering of stock.
  
  In March 2008, the Court upheld the claims brought against the auditors and underwriters pursuant to Section 11 of the Securities Act and dismissed the Section 10(b) claims against the auditors. Both the auditors and the underwriters have asked the Court to reconsider that order.

• UICI, Inc.

  Cohen Milstein Sellers & Toll PLLC served as co-lead counsel in this case, which resulted in a settlement of $6.9 million.  The case involved Defendants artificially inflating the price of UICI stock by concealing the fact that UICI’s subsidiary’s student loan portfolio was under collateralized in violation of its finance agreements with its insurers, and that UICI’s President and CEO during the Class Period intentionally manipulated reports to investors that had the purpose and effect of concealing the fact that the student loan portfolios were undercollaterized and in violation of its loan covenants.

• Xybernaut Corp.

  Cohen Milstein served as co-lead counsel for the plaintiff class in the securities fraud action against Xybernaut Corp. and several of its officers and directors.  After defeating several motions to dismiss the class action complaint, Cohen Milstein was able to reach a settlement with the Defendants.  In total, the class received an all cash settlement of $6,300,000, which received final approval from the Court in February 2008.  The Firm believes this was an outstanding result, especially considering that the Company filed for Chapter 11 bankruptcy protection in July 2005 and was no longer a publicly-traded company.

• Isilon Systems, Inc.

  Cohen Milstein Sellers & Toll PLLC served as lead counsel in this case, which resulted in a settlement of $15 million.  The case involved Defendants’ engaging in revenue manipulation to deceptively increase Isilon’s revenue, which in turn enticed investors to purchase Isilon securities both during and after the IPO, artificially driving up the price of Isilon’s common stock.

For more information, please contact us at lawinfo@cohenmilstein.com.