As lead counsel, achieved $14.6 million recovery and landmark PSLRA ruling establishing lead-plaintiff standards
Plaintiff(s):
Gluck, et al., on behalf of a class of shareholders
Case type / claims:
Securities fraud class action, one of the earliest cases filed under the Private Securities Litigation Reform Act (PSLRA), alleging material misrepresentations and omissions by CellStar that inflated stock prices and caused investor losses.
Defendant(s):
CellStar Corporation, et al.
Jurisdiction:
U.S. District Court for the Northern District of Texas
Year:
1999
Outcome:
- Grant & Eisenhofer, serving as lead counsel for a large public pension fund, secured a $14.6 million settlement plus corporate governance reforms.
- The case established influential precedent on lead-plaintiff and lead-counsel selection under the PSLRA.
- The recovery represented 56% of actual losses—about four times the historical average gross recovery in securities class actions—and, after reduced contingent fees, a net recovery of nearly 50%, roughly five times the historical norm.
