Securities / Financial Fraud
Overview
For the past four decades, CPM has been a preeminent securities litigation firm in the United States, recovering billions of dollars for individual and institutional investors. CPM was recognized by the Institutional Shareholder Services in its annual Top 50 of 2019 report, listing the top 50 plaintiff law firms in North America ranked by the total amount of funds recovered in securities class action settlements. CPM ranked tenth in the prestigious list, bringing in $82,200,000 in settlement funds from its securities practice, including landmark recoveries in the Alibaba and ProNai class actions, amongst others.
CPM has served as lead counsel in prominent nationwide class actions, including the Medical Capital litigation, where CPM obtained one of the largest Ponzi scheme recoveries in United States history on behalf of elderly investors. CPM is currently lead or co-lead counsel in class or derivative actions on behalf of shareholders of Wells Fargo, Facebook and Uber.
For more information, or to discuss a potential legal matter, please follow up with Mark Molumphy or Brian Danitz.
Noteworthy Cases
Noteworthy Cases
In re LendingClub Securities Litigation
San Mateo Superior Court/ United States District Court, Northern District of California
CPM was Co-Lead Counsel for a certified class of shareholders alleging that LendingClub and certain officers failed to disclose material information at the time of its initial public offering. The California state court action and the related federal court action settled for $125 million. (Settled, 2018)
Chicago Laborers Pension Fund, et al. v. Alibaba Group Holding Limited, et al.
San Mateo County Superior Court
CPM served as Co-Lead counsel in the Alibaba securities litigation before the Honorable Richard H. DuBois. The securities class action was brought against Alibaba for alleged violations of §§11, 12(a)(2) and 15 of the Securities Act of 1933 by reason of material misrepresentations and omissions in the Registration Statement and Prospectus for Alibaba’s September 2014 initial public offering. The $75 million settlement was approved by Judge DuBois on May 17, 2019.
Kerrigan Capital, LLC v. Strohm, et al. (Oportun)
San Mateo County Superior Court
CPM was Lead Counsel for a certified class of Oportun’s common shareholders alleging that their ownership interests were unfairly diluted by a series of insider financing rounds led by Oportun’s largest preferred shareholders, including venture capital funds that had representatives on Oportun’s Board of Directors. (Settled, 2018).
In re ProNai Therapeutics, Inc. Shareholder Litigation
San Mateo County Superior Court
CPM was Lead Counsel seeking to represent a class of shareholders alleging that ProNAi failed to disclose material information at the time of its initial public offering relating to its developmental drug. (Settled, 2019).
In re Eventbrite, Inc. Securities Litigation
San Mateo County Superior Court
CPM represents Eventbrite, Inc. shareholders who invested in Eventbrite’s September 2018 initial public offering. Eventbrite operates an event ticketing platform and manages certain events. The complaint alleges that Eventbrite misrepresented or failed to disclose information relating to the integration of an acquired company in the IPO documents sent to investors. The action is currently pending.
Wong, et al. v. Restoration Robotics, et al.
San Mateo County Superior Court
CPM represents investors who purchased Restoration Robotics stock in its October 2017 initial public offering. Restoration Robotics is a medical technology company that developed technology to assist doctors with follicular unit extraction surgery, a type of hair restoration procedure. The action alleges the company failed to disclose issues with the commercial viability of the technology that, once disclosed, resulted in a drop in the share value. The action is currently pending.
In re Uber Technologies, Inc. Securities Litigation
San Francisco County Superior Court
CPM represents investors in a proposed class action against Uber Technologies, Inc., Uber officers and directors, and the investment banking firms that acted as underwriters for Uber’s initial public offering in May 2019, alleging that Uber’s registration statement and prospectus contained misleading information about Uber’s condition. The action is pending in San Francisco Superior Court, where Uber’s headquarters is located.
In re Medical Capital Securities Litigation
United States District Court, Central District of California
The District Court in Los Angeles granted final approval of one of the largest settlements in United States history against an indenture trustee. Mark Molumphy served as Co-Lead Counsel for investors in Medical Capital, a medical receivables company based in Tustin, California. Wells Fargo and Bank of New York Mellon served as indenture trustees for investors, responsible for administering trust accounts where the investor funds were deposited. Medical Capital turned out to be a massive Ponzi scheme; the plaintiffs alleged the banks breached their duties under the trust agreements and disbursed hundreds of millions of dollars to Medical Capital. Wells Fargo agreed to pay $105 million and Bank of New York Mellon agreed to pay $114 million to resolve the actions.
Lehman Brothers Litigation
United States District Court, Southern District of New York
CPM served as liaison counsel and represented San Mateo County; Monterey County; the cities of Auburn, San Buenaventura, and Burbank; and Zenith Insurance Company in a securities action relating to their investment losses in Lehman Brothers. The action was the first to allege direct liability against Lehman’s management, including Richard Fuld. CPM ultimately negotiated settlements on behalf of each of these public entities.
In re BP Securities Litigation
United States District Court, Southern District of Texas
CPM is Co-Lead Counsel for investors who purchased American Depository Receipts ("ADRs") issued by BP, and suffered damages following the Gulf of Mexico explosion and oil spill. The plaintiffs allege that BP and its senior executives falsely touted BP’s safety and risk management practices relating to its deep sea drilling operations. The action is currently pending.
In re Homestore.com, Inc. Securities Litigation
United States District Court, Central District of California
CPM was Lead Counsel in a securities fraud class action representing CALSTRS against Homestore.com, Inc., its senior officers and directors, its auditors, and other companies who engaged in fraudulent "roundtripping" transactions, increasing revenues by false accounting methods. In 2004, the court approved a settlement in which Homestore agreed to reform its corporate policies and pay approximately $93 million in stock and cash. In 2011, CPM obtained a jury verdict against a Homestore executive for securities fraud. (Jury Verdict 2011)
Pay By Touch Litigation
San Francisco County Superior Court
CPM represented investors, including the Getty family trusts, in a securities action against UBS Securities and former executives of Pay By Touch alleging fraud and negligent misrepresentation. (Settled 2011).
California State Teachers’ Retirement System v. Qwest Communications
San Francisco County Superior Court
CPM represented CALSTRS in a securities action for losses in excess of $100 million. The complaint charged certain Qwest executives and directors, its accountants, and banks with violations of state securities laws and alleges that defendants made false and misleading statements about Qwest's financial condition. (Settled, 2007).
California State Teachers’ Retirement System v. AOL Time Warner
Los Angeles County Superior Court
CPM represented shareholders in a securities action against AOL for misrepresenting its financials and artificially inflating its stock price. (Settled, 2007)
