Securities & Financial Fraud Successes

Keller Rohrback enjoys a national reputation for excellence in prosecuting securities and financial fraud matters. We represent a variety of investors ranging from classes of individuals to large institutions. Many of our cases reflect recent financial scandals: we are pursuing claims against a group of international banks for rigging LIBOR; we represent investors in connection with their purchases of billions of dollars of mortgage-backed securities; and we pursued claims on behalf of employee benefit plans in connection with the Madoff Ponzi scheme. While our experience is diverse, our approach is simple and straightforward: we master the factual and legal bases for our claims with a focus on providing clear and concise explanations of the financial fraud and why our clients are entitled to recover.

Representative Cases & Successes

In re Inc. Securities Litigation
(W.D. Wash.) Keller Rohrback L.L.P. represented individual shareholders in litigation filed on behalf of purchasers of the securities of, Inc. (“Amazon” or the “Company”) (NASDAQ:AMZN) between October 29,1998, and October 23, 2001, inclusive (the “Class Period”). The complaint alleged that, during the Class Period, Amazon and certain of its officers and directors–Jeffrey P. Bezos, Joseph Galli, Jr., and Warren C.Jenson–violated federal securities laws (specifically certain sections of the Securities Exchange Act of 1934) by disseminating to the investing public false and misleading financial statements in SEC filings and press releases concerning the Company’s revenues, investments in joint ventures, earnings, cash flow and its overall financial condition and future prospects. A settlement was achieved on September 15, 2005, providing $27.5 million for the benefit of the class.

Federal Home Loan Bank Litigation
Keller Rohrback has played a prominent role in large securities fraud and other investment cases litigated across the country involving mortgage-backed securities. Keller Rohrback has been retained by several Federal Home Loan Banks (FHLBs) to pursue securities and common law claims against dozens of issuers, underwriters, and sponsors of mortgage-backed securities. The FHLB complaints named more than 120 defendants and involved over 200 securities with a collective original face value of $13 billion. The relief sought by the FHLBs includes rescission and damages under state blue sky laws and the federal securities laws. We have recovered hundreds of millions of dollars on behalf of our clients to date.

In re the Bank of New York Mellon (as Trustee)
(N.Y. Sup. Ct.). Keller Rohrback was a member of the three-firm steering committee addressing significant mortgage repurchase issues that impacted institutional investors. We represented certificate holders who intervened in a proposed $8.5 billion settlement initiated by Bank of New York Mellon, as Trustee of 530 Countrywide mortgage-backed securities trusts. Our firm played a lead role in discovery and the eight-week bench trial in New York contesting the fairness of the settlement. The objection we pursued and tried was only objection that the trial court sustained.

Louisiana Firefighters’ Retirement System v. Northern Trust Investments, N.A.
(N.D. Ill.). Keller Rohrback served as co-lead counsel on behalf of public pension funds in litigation against Northern Trust alleging securities lending-related breaches of fiduciary duty. We obtained a settlement of $22 million on behalf of the class. Diebold v. Northern Trust Investments, N.A.


Diebold v. Northern Trust Investments, N.A.
(N.D. Ill). Keller Rohrback was class counsel in litigation against Northern Trust alleging securities lending-related breaches of fiduciary duty. We favorably resolved the action on behalf of the class of ERISA plans for $36 million. Bank of New York Mellon Corp. Forex Transactions Litigation.

Bank of New York Mellon Corp. Forex Transactions Litigation
(S.D.N.Y.). Keller Rohrback served as counsel in this class action against the Bank of New York Mellon relating to its improper foreign exchange charges. In March 2015, a global resolution of the private and governmental enforcement actions was announced in which $504 million will be paid back to BNY Mellon customers—$335 million of which is directly attributable to funds received in the class litigation.

Madoff Direct & Feeder Fund Litigation: Hartman v. Ivy Asset Management LLC
(S.D.N.Y). Keller Rohrback successfully litigated this direct action on behalf of the trustees of seventeen employee benefit plans damaged by the Madoff Ponzi scheme. The action alleged that Ivy Asset Management and J.P. Jeanneret Associates, Inc. breached their fiduciary duties under ERISA by causing the plans to be invested directly or indirectly in Madoff funds. Keller Rohrback obtained a settlement of over $219 million in this case and related actions, including claims brought by the United States Secretary of Labor and the New York Attorney General.

In re IKON Office Solutions, Inc. Securities Litigation
(E.D. Pa.). Keller Rohrback served as co-lead counsel representing the City of Philadelphia and eight other Lead Plaintiffs in this certified securities class action. Class Counsel achieved the highest securities fraud settlement in the history of the Court at the time, by settling with defendant IKON Office Solutions, Inc. for $111 Million. At that time, the settlement was listed by USA Today as one of the “largest settlements in class-action securities-fraud lawsuits since Congress reformed securities litigation in 1995.”

In re Apple Computer, Inc. Derivative Litigation
(N.D. Cal.). Keller Rohrback served on the management committee in the federal derivative shareholder action against nominal defendant Apple Computer, Inc. and current and former directors and officers of Apple. Plaintiffs pursued breach of fiduciary duty, unjust enrichment, and gross mismanagement claims arising from backdated stock options granted between 1993 and 2001 which diverted millions of dollars of corporate assets to Apple executives. We achieved a settlement that awarded $14 million—one of the largest cash recoveries in a stock backdating case—and that required Apple to adopt a series of unique and industry-leading corporate enhancements.

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