Securities and Financial Litigation

Our Securities and Financial Litigation lawyers have represented many different entities in financial services litigation matters in federal and state courts, and in industry arbitrations not only as defendants, but as plaintiffs as well.  Sometimes, the loss is too great, or the circumstances too egregious, for an institutional investor to avoid taking action. These are the instances where we can use our unique history to assist institutional investors who have suffered a major fraud loss. 

Because our Securities and Financial Litigation lawyers handle work on the defense side we understand the typical mind set and strategy of our adversaries as well as  the concerns that institutional investors have about being a plaintiff.  We offer the investor a law firm that has the sophistication, the experience, and the flexibility to structure a fee arrangement that will meet the client’s needs. Most importantly, we have skilled trial attorneys with years of experience trying cases and a reputation for doing so when required.   

Our Experience 

At Robins, Kaplan, Miller & Ciresi L.L.P., we have a team of experienced trial lawyers, corporate securities lawyers and in-house Financial and Economic Consultants who provide substantial knowledge and assistance on cases.

Today, credit derivative markets, collateralized investments, and other structured investments vehicle products are top-of-mind.  In credit derivative markets, our attorneys have focused particularly on credit default swaps.  In collateralized investments and other structured investment vehicle products, our attorneys have ongoing case work and are continuing to conduct other investigations.

Preferred stock offerings such as those of Fannie Mae and Freddie Mac and Rule 144A bond offerings are other areas of ongoing case work and investigation for our attorneys. 

We are also handling investigations in other equity investments and potential losses related to alleged ponzi schemes.

  • Experience

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    Much of our experience is reflected in the “Selected Results of the Firm.”  These results demonstrate examples of our experience in handling large, sophisticated, complex matters.  Our focus within the firm is on trial and litigation skills, and our reputation for being willing and able to try cases, means that when we appear in a case, our adversaries should expect the seriousness with which we approach our matters.  We believe our involvement shows others that this case is an important matter for our client.

    Among the selected results are cases in which we represented mutual funds, hedge funds and investment managers which suffered substantial losses on investments due to fraud or reckless conduct on the part of those who sponsored and promoted the investment.  These cases involved offerings to institutional investors only, and due to the limited number of investors, and the desire of the investors to control their own fate, the investors pursued their claims individually and not as part of a class. 

    Even where a class is formed, which is more likely to occur with a public offering, large investors may find it more advantageous to pursue their claims individually.  Securities class actions typically recover just 1% to 10% of the estimated damages according to Post-Reform Act Securities Law Suits:  Settlements Reported Through December 2003 published by Cornerstone Research.  In our experience in the antitrust arena, plaintiffs which opt-out of the class action procedure and pursue their claims individually often feel more in control of their own success than plaintiffs who remain part of the class.  This same philosophy can be brought to securities actions.

  • Clients and Industries

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    • Investment Managers
    • Mutual Funds
    • Insurance Companies
    • Public Pension Plans
    • Hedge Funds
    • Foundations
    • Accredited Individual Investors

  • Selected Case Results

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    • Minnesota Workers’ Compensation Reinsurance Association et al. v. Wells Fargo Bank, N.A.: Four nonprofits - Minnesota Workers' Compensation Reinsurance Association, Minnesota Medical Foundation, The Minneapolis Foundation, and Robins, Kaplan, Miller & Ciresi Foundation for Children - participated in a securities lending program run by Wells Fargo. The bank represented that the collateral in the program would be invested in short-term money market instruments, where the prime considerations would be safety of principal and liquidity. Instead, the bank invested a substantial portion of the collateral in risky and/or illiquid securities, including complex structured investments. The jury found that Wells Fargo breached its fiduciary duty and violated the Minnesota Consumer Fraud Act. In post-trial orders, the trial court awarded Plaintiffs attorneys' fees, and costs and disbursements. The trial court also awarded Plaintiffs forfeiture of fees by Wells Fargo and awarded pre-and post-judgment interest. This was the first trial and recovery of this type in the country. On April 16, 2012, the Minnesota Court of Appeals issued its opinion affirming the trial court. On June 27, 2012, the Minnesota Supreme Court denied Wells Fargo's petition for review. The final judgment, plus additional post-trial attorneys' fees paid by Wells Fargo, totaled more than $57 million.

    • Structured Settlements: As class counsel, we represented 250 injured plaintiffs pursuing claims against major banks, financial institutions and brokerage houses for the loss of U.S. Treasury Bonds which were intended to fund structured settlements to be paid over a twenty-year span.

    • Miller v. Mills Corporation: Represented individual and related trusts and corporation in an action for recovery of the reduction in value of their investment units due to a restatement of Mills Corporation's financial statement.

    • In re Workers Compensation Refund Litigation: Acted as lead counsel for casualty insurers who filed suit in federal court against the State of Minnesota to contest the legislative taking of excess workers compensation reinsurance premium payments.  We obtained a summary judgment ruling on the basis that the action of the Minnesota Legislature violated the contract impairment clause of the Constitution of the United States.  842 F.Supp. 1211 (D.Minn. 1994).  We then obtained an affirmance in the Court of Appeals for the Eighth Circuit.  46 F.3d 813 (8th Cir. 1995).  The prosecution of this case resulted in the refund of $700 million in excess premiums to the insurers.

    • AMEX Mutual Funds Case Result: AMEX Mutual Funds Represented AMEX Mutual Funds in a few matters to recover assets when properties were improperly appraised and when the bond issuers defaulted on projects.  We recovered assets from the companies, bond underwriters, trustee banks, and lawyers involved in the projects.

    • High-Yield Bond Litigation : Represented several institutional investors, including 5 mutual funds, which invested millions of dollars in high yield bonds issued by a Thai Steel Mill.  The bonds were underwritten by U.S. investment banks and sold to the institutional investors under Rule 144A.  Our clients sued two of the underwriters and another defendant for fraud and ultimately recovered by settlement just before trial about 80% of their out of pocket damages.  The case required discovery from parties in and outside of the United States and involved complex financial and accounting issues.  In the course of the litigation, we established, in two separate published opinions, that a sophisticated investor is not required to conduct an independent investigation as to the accuracy of statements made in an offering memorandum when there is nothing obviously suspicious about those statements.



    *Past results are reported to provide the reader with an indication of the type of litigation in which we practice and do not and should not be construed to create an expectation of result in any other case as all cases are dependent upon their own unique fact situation and applicable law.