Securities Litigation

Lowey Dannenberg is retained by some of the world’s largest investors to recover money lost due to securities fraud.  Our clients’ look to us to provide a straight forward assessment of their claims, their losses and to map out their best course.  We tailor our advice to the client’s goals in recommending a motion to: lead a class action litigation; prosecute separate claims, or evaluate alternate theories.  Many clients rely on us to monitor their portfolios and provide ongoing oversight and analysis.

Our investor litigation practice group has recovered billions of dollars.  The value of our accomplishment is also measured by the landmark, long-term corporate governance changes negotiated at public companies that enhance future shareholder value.

Lowey Dannenberg prosecutes claims as Lead Counsel often.  However, a client’s best course may be to prosecute individual opt-out claims.  Timing of stock purchases and the magnitude of a clients’ losses; representations made directly to the client and other facts should inform this strategic decision.  Lowey clients have recovered more than five times the amount they would have received as passive class members when they pursued an opt-out strategy.

  • Lowey as Lead Counsel succeeds in defeating dismissal motions in one of the only Madoff “Feeder Fund” cases to progress to this stage.  Claims upheld against advisors, lawyers and Ivy Asset Management.
  • $169.5 million settlement of options backdating fraud litigation against Juniper Networks and others led by Lowey as Counsel for New York City pension funds; recovery based on a percentage of damages represents a watershed victory.
  • As co-lead Counsel, the Lowey Firm recovers $69 million for stockholders of Affiliated Computer Services on the eve of trial, by challenging the terms of the ACS Merger with Xerox.
  • Lowey Dannenberg obtains temporary restraining order for mutual funds enjoining the Republic of Argentina from canceling $60 million face value of bonds erroneously tendered.
  • California District Court approves Lowey’s settlement of Luminent Mortgage Capital, Inc. securities class action calling the settlement exceptional in light of the bankruptcy.
  • Lowey pierces privilege claims successfully gaining access to audit committee investigation for shareholders.
  • Lowey achieves $79.75 million recovery for class of United States investors in Philip Services Corp securities
  • Lowey recovers $78.7 million for opt-out client from WorldCom securities fraud.
  • $27.25 million obtained for shareholder class of purchasers of CINAR securities
  • $106 million recovery for class of shareholders of Reliance Acceptance Group, Inc.

Lowey Dannenberg approved as Lead Counsel in Community Health Systems, Inc. Securities Litigation

On December 28, 2011, the Honorable Judge John T. Nixon, Senior Judge, adopted the Report and Recommendation of U.S. Magistrate Clifton E. Knowles, issued on November 28, 2011, appointing the New York City Pension Fund Systems as Lead Plaintiff in the consolidated action entitled Norfolk County Retirement System v. Community Health Systems, Inc., pending in the United States District Court for the Middle District of Tennessee. See Norfolk County Retirement System v. Community Health Systems, Inc., Slip Copy, 2011 WL 6202585 (M.D.Tenn. November 28, 2011). Lowey Dannenberg Cohen & Hart, P.C. is serving as Lead Counsel to the Funds on this matter. This action charges Community Health Systems (CHS), one of the nation's largest operators of general acute care hospitals, and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that, throughout the Class Period, the Company's financial results were artificially inflated by virtue of the fact that CHS was systematically overcharging Medicare, one of its principal sources of revenue.

AMARANTH

Lowey Dannenberg currently serves as co-lead counsel in In re: Amaranth Natural Gas Commodity Litigation, Case No. 07 Civ. 6377 (SAS) (S.D.N.Y.), a certified class action involving the manipulation of NYMEX natural gas futures and options contract prices by Amaranth Advisors LLC, one of the largest natural gas hedge funds prior to its widely-publicized collapse in September 2006. In December 2011, the Amaranth Defendants agreed to settle the case for $77.1 million. The Court has granted preliminary approval of the settlement, and scheduled an April 9, 2012 final approval hearing. As Co-Lead Counsel, Lowey Dannenberg has achieved significant litigation victories for Plaintiffs and the Class that, in part, prompted this settlement. For instance, on April 27, 2009, the Honorable Shira A. Scheindlin, District Court Judge for the Southern District of New York, sustained Plaintiffs' claims for primary violations and aiding and abetting violations of the U.S. Commodity Exchange Act against Amaranth Advisors LLC and other Amaranth Defendants. Amaranth, 612 F. Supp.2d 376 (S.D.N.Y. 2009). On April 30, 2010, Judge Scheindlin granted Plaintiffs' motion for class certification, 269 F.R.D. 366 (S.D.N.Y. 2010), and on December 30, 2010, the Second Circuit Court of Appeals denied Amaranth Advisors LLC's petition for appellate review of the class certification decision. Plaintiffs have also successfully obtained a pre-judgment attachment award in the amount of $72.4 million against the assets of Defendant Amaranth LLC, the "Master Fund" in the Amaranth hedge fund family. 711 F. Supp.2d 301 (S.D.N.Y. 2010).

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