Securities Litigation & Enforcement

Stradling Shareholder Kathleen Marcus was featured in the article, “New York Cases to Watch in 2022,” published by Law360. In the article, Kathleen shares insight on SEC v. AT&T et. al,  a case where the SEC has alleged that AT&T unlawfully tried to selectively massage securities analysts' forecasts, leaking information about its earnings in an effort to get them to lower their expectations. Although cases involving Regulation RD are “quite rare,” Kathleen emphasized that “Companies should use great care to stay within their public statements and carefully document the communications.”\

The next alert under Stradling’s Privacy.Minded. banner is, "As Ransomware Attacks Increase, The SEC Takes Notice." 2020 has seen a huge increase in ransomware attacks. According to CRN.com, victims of the 11 biggest ransomware attacks (as of June 30, 2020) spent at least $144.2 million on costs related to the attacks. Moreover, the transition to a remote workforce as a result of the COVID-19 pandemic has increased the attack area while simultaneously limiting the effectiveness of cyber defenses. The Securities and Exchange Commission (“SEC”) has taken notice of this increase in attacks and offered observations about what companies should be doing to address this risk.

In Vicky Nguyen v. Endologix, Inc., et al., the Ninth Circuit affirmed in a published decision the district court’s dismissal with prejudice of a putative securities fraud class action because plaintiff failed to meet the heightened pleading standard for scienter required under the Private Securities Litigation Reform Act of 1995 (“PSLRA”). On July 20, 2020, the Ninth Circuit denied plaintiff’s petition for rehearing. A Stradling team lead by Jason de Bretteville represented defendants-appellees in the case.

Stradling has been recognized as a leading law firm in The Legal 500 United States Guide for 2020. Stradling’s M&A (sub $500 million), Securities Litigation (defense) as well as Venture Capital and Emerging Companies practice groups were ranked in the 2020 edition. Legal 500 is widely acknowledged as the world’s largest legal referral guide, with analysis of law firm capabilities extending to more than 150 jurisdictions around the globe.

Stradling’s Securities Litigation, M&A, and Venture Capital practice groups were ranked in the newly released 2019 edition of The Legal 500 United States, published on May 29. Shareholders John Cannon, Kathleen Marcus, Jason de Bretteville, Mark Skaist and Ryan Azlein were individually commended for their work. The Legal 500 is an independent guide, and firms and individuals are recommended purely on merit. It is widely acknowledged as the world’s largest legal referral guide, with analysis of law firm capabilities extending to 107 jurisdictions around the globe.

The Securities Litigation practice was described as “outstanding - a smaller firm that always provides timely, practical advice.” The group also received high marks for having 'tons of experience in high-profile matters, which it can do with a smaller team of high-quality lawyers .” The group’s lawyers are further described as “personable and hands-on partners who match up well with lawyers from bigger firms.” Clients praised John Cannon, the Securities Litigation practice chair, for being “creative and solutions-driven, with exemplary technical aptitude.” The Venture Capital team received high marks for being “business-oriented, direct, efficient, and commercially minded.”

Stradling’s Securities Litigation and M&A practice groups were ranked in the newly released 2018 edition of The Legal 500 United States, published on May 30. This marks the first time the M&A practice has been ranked in the Middle Market (sub $500 million) category, and the second year in a row the securities litigation practice secured a spot in the table. Litigation shareholders Kathleen Marcus, and Jason de Bretteville, and corporate shareholders Chris Ivey, Mark Skaist, and Ryan Azlein were individually commended for their work.