Securities Litigation and Regulatory Enforcement

"They really have top-notch attorneys [in their securities team]. Superb, I couldn't ask for more."
– Chambers & Partners interviewee

At BakerHostetler, the more than 40 attorneys in our Securities Litigation and Regulatory Enforcement practice take a broad, big picture approach to securities law by looking beyond the issue at hand to provide clients with comprehensive legal advice and advocacy. Our team consists of forward-looking attorneys who think outside the box to see the multi-faceted layers of a legal issue and devise creative legal solutions designed to get our clients the best result possible.

We have a consistent track record of success representing public and private issuers, partnerships, closely-held corporations, and directors and officers in connection with securities litigation in federal and state courts across the country.

When a client is facing a government inquiry or investigation, our calculated strategic approach seeks to eliminate or minimize charges with the SEC, CFTC, and FINRA. Our team includes former regulators and government lawyers, and we draw on our personal experience and knowledge regarding the legal tactics of government regulatory agencies to proactively chart the appropriate course of action for those under investigation.

We regularly conduct internal reviews and defend investigations for public companies, boards and committees, broker-dealers, and hedge funds on a number of issues, such as SOX 404 internal controls, insider trading and Regulation FD, FCPA compliance, mutual fund market timing/late trading, hedge fund market manipulation, and portfolio valuations. Our insight and guidance helps clients find appropriate remedial solutions to mitigate adverse business consequences.

We serve as a trusted advisor and partner for our broker-dealer and hedge fund clients. We advise and counsel our clients in connection with their marketing materials, investment and operating strategies and management agreements. We represent our clients before Congress and monitor congressional committees charged with supervising and regulating their activities. Our clients turn to us for assistance in crafting policies and procedures, compliance and employee manuals, as well as advising on internal controls, regulatory filings, regulator examinations and compliance with the Investment Advisers Act of 1940.

Not only are we outstanding legal advisors, but we are highly skilled crisis management attorneys. Often times, the initial stages of a crisis are the most crucial and our attorneys go to great lengths to contain legal and business fallout and investigations through immediate and effective communications with regulators, the client’s constituents, and the media. Because we understand the high stakes that are involved with securities litigation and government investigations, we are able to carefully navigate the complex legal maze and help our clients achieve the best possible outcome.

Select Experience

  • Represented a well-known, highly successful South American businessman and his companies in several related federal and state litigations arising from an investment fraud involving an alleged Swiss bank affiliate. We filed an appeal of an international arbitration lost by our client’s former counsel, resulting in an eight-figure settlement in favor of our client. With that in hand, we leveraged that settlement to resolve for no payment by the clients several other cases which named them as defendants.
  • Currently representing an international investment banking firm involved in an investigation by the SEC, the Financial Conduct Authority in the U.K. and the Comision Nacional del Mercado de Valores in Spain. The investigation arose from the failure and liquidation of an $850 million hedge fund with inflated portfolio valuations. We developed a strategy to protect the interests of our client and minimize legal liability for the investment bank. The matter involved Chapter 15 of the Bankruptcy Code, along with a criminal aspect filed against the hedge fund portfolio manager, as well as a securities class action. Our attorneys guided our client through the parallel regulatory and civil litigations that developed, resolving all matters through their diligence with no actions against our client by the government and a small class action settlement.
  • Currently representing a Fortune 500 oil and gas company in connection with a securities class action arising out of a $4.5 billion acquisition and the merger consideration paid thereunder, with substantial motion practice before the Eastern District of New York, as well as class certification issues pending before the Second Circuit. Post-merger securities fraud class action relates to the calculation of merger consideration in connection with the post-closing conditions precedent.
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Professionals

Name Title Office Email
Jonathan R. Barr Partner Washington, D.C.
Torello H. Calvani Associate New York
John J. Carney Partner New York
Melissa M. Carvalho Associate New York
S. Jeanine Conley Partner New York
William J. Conti Partner Washington, D.C.
Paul P. Eyre Partner Cleveland
Jimmy Fokas Partner New York
Jonathan A. Forman Associate New York
Yulia M. Fradkin Associate Los Angeles
Paul S. Francis Partner Houston
Jessie M. Gabriel Associate New York
Patrick Hannon Partner New York
Margaret E. Hirce Associate New York
Edward J. Jacobs Partner New York
William K. Kane Partner Chicago
Randolf W. Katz Partner Costa Mesa
Mark A. Kornfeld Partner New York
Melissa L. Kosack Associate New York
C. Thomas Kruse Partner Houston
Richard B. Levin Counsel Denver
Jerry R. Linscott Partner Orlando
Thomas L. Long Of Counsel Columbus
Sammi Malek Partner New York
Michael R. Matthias Partner Los Angeles
David M. McMillan Associate New York
Marco Molina Associate New York
John W. Moscow Partner New York
Frank M. Oliva Associate New York
Michael G. Oxley Of Counsel Washington, D.C.
John D. Parker Partner Cleveland
Benjamin D. Pergament Partner New York
Peggy A. Peterson Senior Advisor Washington, D.C.
Marc D. Powers Partner New York
Andrew W. Reich Counsel New York
Edmund W. Searby Partner Cleveland
Nicole A. Skolout Associate Los Angeles
Brian W. Song Associate New York
Trevor M. Stanley Associate Washington, D.C.
Sarah Jane T.C. Truong Associate New York
Ona T. Wang Partner New York
Joanna F. Wasick Associate New York
Madiha M. Zuberi Associate New York

Experience

  • Represented a well-known, highly successful South American businessman and his companies in several related federal and state litigations arising from an investment fraud involving an alleged Swiss bank affiliate. We filed an appeal of an international arbitration lost by our client’s former counsel, resulting in an eight-figure settlement in favor of our client. With that in hand, we leveraged that settlement to resolve for no payment by the clients several other cases which named them as defendants.
  • Currently representing an international investment banking firm involved in an investigation by the SEC, the Financial Conduct Authority in the U.K. and the Comision Nacional del Mercado de Valores in Spain. The investigation arose from the failure and liquidation of an $850 million hedge fund with inflated portfolio valuations. We developed a strategy to protect the interests of our client and minimize legal liability for the investment bank. The matter involved Chapter 15 of the Bankruptcy Code, along with a criminal aspect filed against the hedge fund portfolio manager, as well as a securities class action. Our attorneys guided our client through the parallel regulatory and civil litigations that developed, resolving all matters through their diligence with no actions against our client by the government and a small class action settlement.
  • Currently representing a Fortune 500 oil and gas company in connection with a securities class action arising out of a $4.5 billion acquisition and the merger consideration paid thereunder, with substantial motion practice before the Eastern District of New York, as well as class certification issues pending before the Second Circuit. Post-merger securities fraud class action relates to the calculation of merger consideration in connection with the post-closing conditions precedent.
  • Assisted in the development of a complex and unique structure to facilitate financing of a mineral/commodity trade transactions so our U.K.-based hedge fund client could provide financing in a multi-border crossing venture. The transaction structure was designed to facilitate seamless financing in future transactions involving sugar and iron ore producers in Mexico and Brazil.
  • Represented the former officers of a major governmental financial institution under parallel investigations brought by multiple federal agencies, including the SEC, and related class action litigation following a $4.5 billion accounting restatement. Following a Wells process, we convinced the SEC not to bring formal charges against our clients.
  • Currently representing exchanges, alternative-trading systems, dark pools, broker-dealers, market makers, high frequency trading firm and specialists before the SEC and other self-regulatory organizations (SROs), including FINRA.
  • Represented a broker’s assistant who became a star witness in a high-profile SEC and criminal insider trading investigation, securities class action and criminal trial of Martha Stewart. The team worked through the whole process, and while the client purportedly initially misled authorities about the stock trades in question, our client's testimony played a crucial role in the conviction of his boss and a major businesswoman. Our representation assisted in saving our client from probation or prison time.
  • Counseled a full-service international investment bank after it failed to report several thousand bond transactions over a three-year period to the Financial Industry Regulatory Authority (FINRA). Our team successfully negotiated settlement with FINRA and avoided substantial monetary sanctions and negative publicity to the banking client. We advised client to take proactive steps to address and remediate potential violations.

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