IPO Securities Litigation

On October 5, 2009, after more than eight years of hard-fought litigation, the Honorable Shira A. Scheindlin of the United States District Court for the Southern District of New York granted final approval to a $586 million settlement of the consolidated action, In re Initial Public Offering Securities Litigation, No. 21-MC-92 (S.D.N.Y.) (the “IPO Litigation”). Senior Partner Stanley D. Bernstein served as chair of the Plaintiffs’ Executive Committee and led all plaintiffs’ counsel in litigating the case to this favorable settlement. The case consists of more than 300 initial public offerings (“IPOs”) marketed between 1998 and 2000. The defendants include the companies brought public, certain of their officers and directors, and fifty-five of the investment banks that brought the companies public and underwrote various follow-on offerings. The lawsuits allege that the IPOs were manipulated by the investment banks to artificially inflate the market price of those securities and to conceal the amounts of compensation actually received by the underwriters.

After vigorously litigating for over eight years, the firm led complex mediated settlement discussions, spanning seven full-day sessions over the course of months, and involving over 100 attorneys representing 300 issuers, fifty-five investment banks, and scores of insurance carriers. The complexities required the enlistment of two of the best known mediators in the country, retired judges the late-Nicholas H. Politan and Daniel Weinstein. The negotiations resulted in a $586 million settlement.

For more information about the settlement, please visit www.iposecuritieslitigation.com.