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Bernstein Liebhard Liftshitz, LLP
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Institutional Investor Services
Why Retain Bernstein Liebhard & Lifshitz, LLP?
Each year, investors lose billions of dollars due to the dissemination of false and misleading information about a company and its performance, the failure of corporate officials to act in the best interests of the company and its shareholders, or the consummation of unfair corporate mergers and acquisitions. We monitor these situations so that our clients will have sufficient information to make an informed decision about whether they should respond to the developments affecting their holdings. Bernstein Liebhard & Lifshitz, LLP provides these monitoring and tracking services at no cost or obligation to our institutional clients.
Bernstein Liebhard & Lifshitz, LLP is committed to protecting and defending the rights of our institutional clients. Once we have brought suspicious conduct to the attention of our clients, we evaluate and determine whether such conduct is actionable under the securities laws or state laws governing corporate behavior. We are mindful, however, that not every case is appropriate for active institutional participation. If our investigation leads us to conclude that an action should be initiated, or if a case has been filed by a company shareholder, we will discuss whether our client should participate and seek lead plaintiff status, or whether it should simply monitor the case for any developments that affect its interests.
We believe that our firm will provide an invaluable service to institutional investors, and can assist your fund in maximizing any recovery to which it is entitled. By retaining Bernstein Liebhard & Lifshitz, LLP, your fund will have access to nationally recognized class action attorneys who are responsive to the needs of their clients.
We welcome the opportunity to be of service to your fund. We invite you to visit the remainder of the firm’s Web site and review our firm brochure. Please contact us via telephone or e-mail, and we will be happy to answer any questions you may have or provide you with any further information you may require. We are always available to meet with your fund to make a full presentation of the services that Bernstein Liebhard & Lifshitz, LLP can provide.
Becoming A Lead Plaintiff
With the passage of the Private Securities Litigation Reform Act ("PSLRA"), Congress intended to strengthen the securities litigation system and to ensure that the underlying goals of that system - the prevention of fraud by corporate insiders, the compensation of investors who are victimized by corporate fraud, and the protection of the U.S. capital markets - could be achieved. In passing the PSLRA, Congress made it clear that "[p]rivate securities litigation is an indispensable tool with which defrauded investors can recover their losses. . . ." Congress saw the increased role of institutional investors as an essential component of the statute.
Prior to the PSLRA, institutional investors routinely avoided serving in a leadership role in securities litigation. Indeed, for most institutional investors, taking an active role in class action litigation was procedurally difficult, economically impracticable, and politically imprudent. Taking a passive role provided institutions with some redress for their beneficiaries and investors, while remaining on good terms with the issuer. This passivity often resulted in institutions recovering materially less than their total court-certified losses in class actions.
Since 1995, institutional passivity has given way to active participation. Numerous public and private institutional investors have served as a lead plaintiff in securities class action litigation, obtaining substantial recoveries for all shareholders. According to Cornerstone Research, approximately 30% of all post-PSLRA settlements through 2002 have involved an institutional investor as lead plaintiff. Between 1991 and 1994, the number of settlements involving an institutional investor was less than 20%. More importantly, according to Cornerstone Research, the total value of cases settled and average settlement amount have increased each year since the passage of the PSLRA. The rise in average recoveries is directly related to the increased level of institutional investor participation in securities litigation.
Duties of a Lead Plaintiff
The PSLRA and the courts require the lead plaintiff (and/or a class representative) to adequately and fairly represent the class. To perform these duties, the lead plaintiff must stay familiar with the litigation. The attorneys at Bernstein Liebhard & Lifshitz, LLP are committed to apprising our clients of all major events that occur during a litigation. We are always available to answer questions regarding case status and strategy whenever our institutional clients deem it appropriate to do so.
The lead plaintiff must also vigorously prosecute the litigation. To perform this function, the lead plaintiff must retain attorneys who are experienced in class action litigation. Bernstein Liebhard & Lifshitz, LLP has a national reputation for excellence in prosecuting class actions, and has vigorously prosecuted numerous securities fraud class action cases, with aggregate recoveries well in excess of $1 billion.
The Benefits of Active Participation In Securities Litigation
The attorneys at Bernstein Liebhard & Lifshitz, LLP understand that our institutional clients have fiduciary obligations to their beneficiaries, and, where applicable, to the taxpayers who fund their administrative operations. We are sensitive to the needs and priorities of our institutional clients. For this reason, we are selective about the cases we recommend for active participation. We only recommend participation in cases in which our client has suffered a material loss, and in which its involvement is likely to make a difference for its beneficiaries as well as the class. We believe that this formula forms the predicate on which institutional investors can obtain the many benefits associated with serving as a lead plaintiff. Chief among these benefits are:
- Increasing the net monetary value of any settlement or jury verdict;
- Increasing the long-term value of the shares in the company being sued, which enhances the funds’ portfolio;
- Deterring wrongful corporate conduct, which undermines the integrity of the financial markets;
- Participating in strategic decisions that affect the ultimate disposition of the case;
- Achieving changes in corporate governance; and
- Reducing attorney's fees in securities class action litigation.
Bernstein Liebhard & Lifshitz, LLP is committed to assisting our institutional clients in recovering assets lost due to false and misleading statements, unfair corporate transactions, and breaches of fiduciary duty. We are also committed to protecting shareholders rights and enhancing corporate governance procedures. To this end, we will, on a monthly basis, monitor the investment portfolio of our institutional clients to identify losses due to violations of federal and state laws, insider wrongdoing, and corporate waste and self-dealing.
When a situation arises that may merit active institutional participation, we analyze the factual and legal predicate for action, options to be considered (such as filing a motion to become lead plaintiff; joining another institution in a lead plaintiff motion; monitoring the case for more active participation (or opting out) at a later date; or filing an individual claim), the recoverable damages, and an overview of the likelihood of recovery. We perform this analysis at no charge. We also advise our clients about the availability of insurance, if known, and assets to satisfy any judgment. Finally, we discuss potential discovery issues, including the anticipated time burdens on the client in a particular case. At all times, our institutional clients are involved in the process; no course of action is taken without our client’s approval.
Because we are committed to serving our institutional clients, we recommend active institutional participation only in select instances, such as when the fund sustains a loss in excess of its stated threshold for a securities claim. If an institutional client decides to become an active participant in securities litigation, we provide periodic reports to the fund’s designated staff member concerning the status of the matter, as well as interim reports identifying all intervening material events.
Bernstein Liebhard & Lifshitz, LLP is a firm that has built a national reputation not only on the quality of work that it performs, but also on the quality of the service that it renders. The monitoring and evaluation services that the firm provides to institutions are an integral component of Bernstein Liebhard & Lifshitz, LLP’s goal to maximize the recoveries sought in securities litigation for its institutional clients and their investors and beneficiaries.
