The members of the securities litigation practice group of Karr Tuttle Campbell initiate and defend lawsuits, arbitrations, and regulatory proceedings based upon federal and state securities laws. In these matters, we have represented companies, and their officers, directors and other management, broker-dealer firms, securities salespersons, attorneys, accountants, investors, and security holders, and have served numerous times in the role of an expert witness. These disputes have been grounded on a broad variety of transactions and legal theories
A Securities Law Tradition
Karr Tuttle Campbell, founded in 1904, has a long history related to securities litigation. Indeed, Day Karr, our founder, was the SEC’s first legal representative in Seattle. The attorneys included in our current securities litigation practice group continue this long tradition of experienced excellence in securities litigation, having tried a substantial number of jury and non-jury lawsuits and handled many arbitrations in a broad range of commercial litigation matters, including class actions and other complex securities cases.
Variety of Cases
Typical securities cases in which the firm’s attorneys have participated are those arising from private and public offerings, mergers and other business acquisitions and sales. Other types of transactions that have given rise to securities lawsuits include disclosures by companies having securities that are traded in the public securities markets, formation of joint ventures, proxy contests, and tender offers.
These disputes have been based upon a wide variety of legal theories, such as those governing the registration of securities; compliance with federal proxy statement and tender offer rules; disclosures in securities and franchise offering materials, proxy and tender offering materials, press releases, reports to stockholders and the like; insider trading and tipping of inside information; management and sellers “due diligence” compliance; broker-dealer due diligence; churning of investor accounts; unsuitable recommendations to investors; unauthorized transactions on behalf of investors; negligent misrepresentation, common law fraud, contract, agency and fiduciary law.
Representative Matters in Which Our Securities Litigation Attorneys Have Participated
- FDIC Class Action Litigation. Represented the FDIC in securities class actions in state and federal court in Washington regarding billions of dollars of claims arising out of mortgage securitizations and alleging violations of the Securities Act of 1933.
- CTGR v. Strategic Wealth Management, Inc. Defended investment advisor in litigation and arbitration involving securities and related claims of $57,000,000.00 Obtained dismissal of all claims and an award of approximately $1.5 million of attorney fees and costs against plaintiff.
- Casino Investment Litigation. Represented ten couples in a lawsuit against their former accountant and accounting firm involving securities, professional malpractice, breach of fiduciary duties and other claims relating to an investment in a casino. After a bankruptcy filing by one of the defendants on the eve of trial, the case settled for a substantial recovery while pending as an adversary proceeding in Bankruptcy Court.
- Bedrossian, et al. v. Stipek. Successfully tried plaintiffs’ securities case in King County uperior Court, and obtained judgment on all claims, including damages for negligent infliction of emotional distress.
- FINRA (formerly NASD) Arbitrations. Represented brokers and broker-dealers in contract disputes regarding scope of non-compete agreement.
- FINRA Arbitrations. Represented customers in claims against broker-dealers to recover losses from alleged failures to follow instructions and perform due diligence.
- Washington Department of Financial Institutions Administrative Proceeding. Represented a broker-dealer firm, and its president in an administrative proceeding based upon alleged failure to supervise a securities salesperson who offered and sold unregistered securities to the company.
- Montana Securities Department Administrative Proceeding. Represented broker-dealer in administrative proceeding based upon alleged failure to supervise a securities salesperson who sold securities to his clients in alleged violation of Montana securities laws.
NASD (now FINRA) Administrative Inquiry. Represented broker-dealer in negotiating Letter of Acceptance, Waiver and Consent resolving alleged violations of miscellaneous securities laws and NASD rules.
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