Our Securities Litigation and Regulatory Enforcement Group is well-positioned to handle any type of securities class action and has a remarkable success rate to back it up. The group has earned a reputation for exceeding clients' expectations in all phases of litigation. We have successfully defended well over 100 securities class actions throughout the United States, on behalf of companies large and small, and specialize in obtaining dismissals at the motion to dismiss phase (before the commencement of discovery). In addition to our superior record for dismissals, we are one of a handful of firms with lawyers that have tried securities class actions to verdict.
Some cases can be disposed of early by our convincing plaintiffs to dismiss the complaint voluntarily and without payment ("walkaways"). Although walkaways are increasingly difficult to obtain, we continue to be successful in achieving them for both 1933 and 1934 Act cases.
Motions to Dismiss
By raising the standard for pleading securities fraud, the Private Securities Litigation Reform Act of 1995 gives companies an unusual opportunity to knock out a case early. Our securities litigators know how to capitalize on that opportunity. We win motions to dismiss in more than 80 percent of our cases, compared to an industry average of approximately 30 percent.
Moreover, because mounting distrust of corporate America is affecting judges' decisions when making close calls on motions to dismiss, our expertise now more than ever is critically important.
Credibility with plaintiff's lawyers translates directly into favorable and early settlements for the defense. Our win rate on motions to dismiss, proven ability to try cases to verdict, and close working relationships with the D&O insurers (who normally contribute to a settlement) gives our team this credibility. As a result, the settlements our securities litigators negotiate are less than half the national average.
Although few securities cases have actually gone to trial, a credible trial threat often proves decisive in resolving securities class actions on favorable terms to our clients. The public is more inclined than ever to believe that companies and their officers and directors have engaged in misconduct, and the prospect of a bet-the-company jury trial gives plaintiffs enormous settlement leverage. We are able to reverse this leverage because the plaintiffs' securities class action bar knows that we can, and will, take cases to trial, and that we will win. Our securities litigators have extensive jury trial experience, including two of the six major public company securities class actions that have gone to a jury trial in the last five years.