recovery in mortgage-backed securities action
Cohen Milstein’s Securities Litigation & Investor Protection practice is dedicated to recovering assets for investors. Throughout our years of practice, we have developed innovative strategies to hold defendants accountable for misrepresenting important information to investors and to obtain favorable rulings for our clients, which include many of the largest public and Taft-Hartley pension funds. We have a track record of maximizing recoveries for clients and of being prepared to go the distance, including taking cases to trial. Beyond litigation, we provide extensive portfolio monitoring and case evaluation services to some 150 institutional investor clients and work closely with them to customize our services to their needs.
For more than 45 years, our practice has prevailed against corporate defendants, returning billions of dollars to defrauded shareholders. We have been involved as Lead or Co-lead Counsel in litigating eight mortgage-backed securities (MBS) class action cases, and have battled such financial giants as Bank of America, JPMorgan and the Royal Bank of Scotland. Our results speak for themselves: In a three-year period alone, we recovered nearly $2 billion for MBS investors, including landmark settlements of $500 million in the Countrywide and Bear Stearns MBS class actions; in both of those actions, our clients, the Iowa Public Employees Retirement System and Oregon Public Employees Retirement System represented the interests of the class. We have proven our ability to achieve results even when the target company has resorted to bankruptcy, as in Rubin v. MF Global, Ltd. Our attorneys are known for being powerful advocates with trial experience: Managing Partner and Co-Chair of the Securities Group, Steven Toll litigated In re Globalstar Securities Litigation, a securities fraud class action that went to trial. We also bring deep expertise in helping our clients determine their best approach in pursuing foreign securities cases. In the Converium litigation, we were able to use the Dutch courts to create a settlement fund under the Dutch Act on the Collective Settlement of Mass Claims.
These and other courtroom victories have earned us accolades, including Law 360’s Practice Group of the Year, for both Securities and Class Actions, and the Most Feared Plaintiffs Law Firm honors for 2015. Our exceptional work on behalf of investors also has won thanks from our pension fund clients, respect from opposing counsel and praise from judges. In naming Cohen Milstein to its 2016 Plaintiffs’ Hot List, the National Law Journal highlighted our success in the RALI MBS Securities Litigation, quoting Judge Katherine Failla of the U.S. District Court for the Southern District of New York, who said: “Plaintiffs’ counsel took on an enormous amount of risk and stuck with it for nearly seven years.” In 2015, U.S. District Court Judge Laura Taylor Swain granted final approval to the $500 million recovery in In re Bear Stearns Mortgage Pass-Through Certificates Litigation, and stated: "I want to thank and congratulate counsel and their respective clients...[T]his hard fought settlement which is very beneficial to the members of the classes, [is] impressive."
Facing big banks and other deep-pocketed opponents has inspired our attorneys to develop groundbreaking legal theories, pioneer efficient and effective case-management techniques and display a steady resolve to take cases to trial if necessary.
- Our partners have regularly been named to such prestigious lists as Law360’s MVPs/Leading Attorneys, LawDragon 500 and Benchmark Plaintiff’s Litigation Stars.
- Our attorneys have prevailed in major securities cases in the 2nd, 5th, 9th and 11th Circuit Courts of Appeals.
- Our partners are thought leaders in the area of securities litigation and corporate governance issues, and frequently are invited to address institutional investors and others on these topics.
- Members of the practice hold leadership positions in legal organizations and publications, and teach and lecture at law schools.
- Our practice attracts talented attorneys from the federal and state governments, and major law firms across the country.
Currently, we represent investors in the following high-profile matters:
- NovaStar Mortgage Backed Securities Litigation: We are lead counsel in this certified MBS class action filed on behalf of unionized workers and other individual and institutional investors in connection with losses incurred from securities issued by NovaStar Mortgage Inc., a major subprime lender that specialized in authorizing risky residential mortgage loans. On March 15, 2017, the U.S. District Court for the Southern District of New York granted preliminary approval to a $165 million all-cash settlement, bringing this lawsuit, the last of 11 MBS class actions Cohen Milstein successfully handled, to conclusion. Final approval of the settlement is pending.
- Wynn Resorts, Ltd. Derivative Litigation: We represent plaintiffs New York State Common Retirement Fund and the New York City Pension Funds in a derivative shareholder lawsuit against certain officers and directors of Wynn Resorts, Ltd. in light of their failure to hold Mr. Wynn, the former CEO and Chairman of the Board, accountable for his longstanding pattern of sexual abuse and harassment of Company employees. The lawsuit seeks to preserve stockholder value in Wynn Resorts, Ltd. by strengthening procedures for responding to claims of harassment and creating stronger governance and risk management controls at the Board level.
- Stock Lending Litigation: We represent Iowa PERS, Los Angeles County Employees Retirement Association, Orange County Employees Retirement System and Sonoma County Employees’ Retirement Association in this ground-breaking lawsuit, in which plaintiffs allege collusion among six of the world’s largest investment banks to prevent modernization of the securities lending market, a critical component of a strong economy that enables trading activities like short selling and hedging while also ensuring that financial systems operate efficiently.
- In re Valeant Pharmaceuticals International, Inc. Third-Party Payor Litigation: We represent a putative class of third-party payors arising from an alleged Racketeer Influenced and Corrupt Organization Act scheme perpetrated by Valeant, its top executives, and co-conspirators at affiliated specialty pharmacies to shield the company’s drugs from competition, fraudulently inflate the prices of its products, and artificially boost sales at the expense of third party payors.
- Kingate Global and Kingate Euro Funds Litigation: We are co-lead counsel in this long-running, high-profile lawsuit that alleges Kingate Global and Kingate Euro, feeder funds in the Bernard Madoff Ponzi scheme, and several related entities failed in their obligations to protect investors in the funds. The case is ongoing.
Interest Rate Swaps Antitrust Litigation
On July 28, 2017, U.S. District Judge Paul Engelmayer issued a ruling allowing a majority of the plaintiffs’ claims to proceed against 11 ‘...