Client Collaborations

Boyer v. Salomon Smith Barney. Our client, a broker-dealer of investment securities and commodities, won a jury verdict after a six-day trial. The case was brought by a commodities trader alleging claims for breach of contract, breach of fiduciary duty, statutory violations, and negligence seeking compensatory and punitive damages for losses incurred in connection with trading contracts for future delivery of crude oil and natural gas. The plaintiff appealed, and the Oregon Court of Appeals split five votes to five. The Oregon Supreme Court unanimously affirmed in favor of our clients, the broker-dealer and its agents.

Barinaga, et al. v. Paulson Investment Company, Inc. and UBS PaineWebber, Inc., et al. This case was brought by an investor who engaged in “short-selling” stock. After a substantial share value drop, claimant alleged numerous claims, including that his loans of stock were investment contracts and thus constituted sales of securities in violation of state and federal securities laws. Claimant sought $52 million in damages, plus attorney fees. Four experts testified in support of claimant’s theory, but the three-member arbitration panel dismissed claimant’s claims in their entirety. The arbitrators also awarded our client UBS all its attorney fees incurred in defending the case.

Wallace v. Hinkle Northwest Inc. Plaintiff alleged several claims arising from losses she incurred on investments, and after a week-long trial, the jury returned its verdict in favor of our clients, the brokerage firm and the stockbroker, on all claims. The court of appeals affirmed the jury verdict in part but remanded the case on one legal ruling by the trial court. On remand, the case was settled for a nominal amount.

In re Badger Mountain Irrigation District Bondholder Litigation. This case began when a bankrupt irrigation district brought a claim against the underwriting firm that handled its municipal bond offering. We succeeded in dismissing all claims brought by the district against the underwriter in state court, and then we defended against the bondholders’ claims in a federal court class action, which was resolved in a settlement.

The Estate of Glancy v. Merrill Lynch, Pierce, Fenner & Smith, Inc. The family members and heirs of a deceased executive alleged mishandling of stock option transactions and sued our client to recover nearly $900,000. The three-member arbitration panel unanimously ruled in favor of Merrill Lynch and dismissed all the claims.

Fulkerson, et al. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., et al. Claimants sought damages for allegedly unsuitable investment recommendations, violations of the securities laws, fraud, and negligence, including claims for punitive damages. All claims were unanimously rejected by the arbitration panel. A small award was entered in claimants’ favor for a clerical error that we conceded.

In re Louisiana Pacific Corporation Securities Litigation. Shareholders brought a nationwide class-action securities fraud case because of a decline in the company’s stock price after significant losses in product liability litigation. The case was settled before trial, but only after extensive and complex litigation.

Brown and Boston PCS 2000, et al. v. Gary H. Arizala, et al. These consolidated actions involving multiple parties alleged securities fraud in connection with creation of a cellular telephone network in Puerto Rico. After several years of litigation, we obtained dismissal of our client, the law firm that created the entity and prepared the securities offering that was alleged to be unlawful.

In re Capital Consultants Litigation. We represented several trust funds in claims against an investment adviser and numerous others arising out of mismanaged investments causing losses of hundreds of millions of dollars. After prevailing in significant motions and more than a year of mediation, all claimants recovered approximately $200 million.