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Securities; Oil & Gas; Fraud; Class Action |
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A local securities attorney and an out-of-state law firm associated the Firm as trial counsel in the prosecution of a securities class action case against several brokerage houses for selling to the public an investment program that had failed, and for which appropriate due diligence had not been conducted. After taking numerous depositions and reviewing thousands of documents, all claims were settled shortly before the case went to trial. The Federal Court approved the settlement resulting in a recovery of $17 Million. The facts of the case and the final result were widely reported in the national press including The Wall Street Journal. |
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Business Dissolution; Bankruptcy; Engineering Malpractice; Soil Testing |
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A large retailer with its own free-standing building was being liquidated, and filed for bankruptcy protection to reorganize. When the property was to be sold, the sales contract required that the soil be tested for contaminants, and the engineering report revealed the presence of toxic chemicals, which significantly reduced the sales price at the court-ordered auction. The retailer’s bankruptcy counsel retained the Firm, and suit was filed against the engineering company for failing to conduct the soil tests in keeping with industry standards, and subsequent tests revealed that there were no toxic chemicals. A settlement was achieved which allowed the retailer’s creditors to receive 100% recovery on their claims, and the retailer recovered the profit which had been lost on the sale. |
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Stockbrokers; Churning Accounts; Licensing |
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The Firm successfully defended an unlicensed “stockbroker” who was sued in Federal Court by a friend who had given the broker $350,000 to invest, all of which was lost in trading. The broker was accused of churning the account, making inappropriate investments, and failing to obtain approval for various trades. A complete dismissal of liability was obtained on behalf of the Client. |
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Ethics; Conflict of Interest; Arbitration; Injunctions |
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A large brokerage firm filed an action seeking to enjoin a prominent law firm from representing an investor in a million-dollar arbitration action against the brokerage firm. The suit claimed that the investor’s law firm had a conflict of interest, since one of its partners had previously represented the brokerage firm when the lawyer was employed by another firm. The Firm was retained by the defendant law firm and, at an emergency hearing the next day, the judge was persuaded that disqualification was not justified. The Client was allowed to proceed with its representation of the investor in his claim against the brokerage firm. |
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Professional Corporations; Takeover Attempt; Injunction |
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The Firm represented a doctor who owned a successful medical practice 50/50 with his partner. However, when “Dr. A’s” professional license was suspended by the State of Georgia, he was notified by the other 50% shareholder that “you are no longer a valid shareholder in the corporation, the corporation will be dissolved, and the corporate assets will be distributed as I see fit.” Dr. ‘A’ was referred to the Firm by his corporate attorney. The Firm immediately filed suit and obtained an injunction preventing the other shareholder from taking any such action concerning the corporation and from liquidating any of its assets or paying out any funds without written consent of the Client. Later, after getting the Client’s license to practice medicine reinstated, the Firm was then able to obtain 100% ownership of the corporation for the Client. |
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