G&E regularly serves as lead counsel in national securities class actions, working closely with public and private institutional investors across the globe as lead plaintiffs. G&E was the first law firm in the country to argue the provisions of the Private Securities Litigation Reform Act (“PSLRA”) allowing an institutional investor to be appointed as lead plaintiff in a securities class action. The opinion in Gluck, et al. v. CellStar, which appointed a large public pension fund as lead plaintiff and G&E as lead counsel, is considered the landmark on the standards applicable to lead plaintiff/lead counsel practice under the PSLRA. The case itself was extremely successful, resulting in a class recovery of approximately 56% of the class’ actual losses, which was, at the time, four times the historical average gross recovery for securities fraud litigation.
Since that time, the Firm has represented institutional investors in over one hundred cases and has recovered more than $12.5 billion for shareholders over last seven years.
G&E is the leading U.S. firm in representing investors in non-U.S. jurisdictions, as evidenced by a comprehensive understanding of the legal principles, laws, and regulations applicable to shareholder litigation in key foreign jurisdictions. Many of the Firm’s competitors often request to partner with G&E when seeking foreign remedies for their institutional investor clients because G&E has developed strategic partnerships with specific international law firms and experts.
The Firm’s experience has been especially beneficial to clients after the Supreme Court’s decision in Morrison v. National Australia Bank, which precludes investors who purchased securities on foreign exchanges from suing under the federal securities laws. This has also provided an opportunity for G&E to be innovative in its pursuit of claims that are not available in U.S. class actions, such as claims under the laws of foreign nations, states, provinces and other political divisions. G&E is currently managing cases in The Netherlands against Fortis, N.V. and Fortis SA/NV; Germany against Porsche and Volkswagen; France against Vivendi Universal; Japan against Olympus; and the United Kingdom against RBS.
Continuing to break new ground, G&E attorneys have litigated cases in U.S. courts raising claims asserted under foreign laws. G&E represented a number of large foreign investors in federal district court that purchased bonds issued overseas, and asserted claims under Section 90 of the United Kingdom’s Financial Services and Markets Act 2000 (“FSMA”). This was the first case in which such claims have been asserted in a U.S. court, and indeed these claims are largely untested even in the courts of the United Kingdom. Additionally, G&E is litigating claims under the FSMA in another federal district court case in a matter that also includes claims under the common laws of the United Kingdom, Scotland, Sweden, Luxemburg, and Germany.
As the future unfolds, it is certain that G&E will continue to lead the way in leveraging every avenue possible to ensure its clients have the best opportunities for recovery both domestically and abroad.