NPR Obtains $35 Million Settlement for MFN Investors
February 27, 2009
NPR was certified to serve as class counsel for the class of shareholders in this matter, filed in the Southern District of New York. This case involved false research reports issued by Salomon Smith Barney’s lead research analyst, Jack Grubman, for reports SSB and Citibank issued about their client, Metromedia Fibre Networks. In 2008, the case settled for $35 million and was granted final approval by the court on February 27, 2009. The settlement is especially significant for two reasons. First, an earlier securities fraud class action against Metromedia Fibre Networks—led by a different firm, but involving largely the same facts—settled for $8 million. NPR was able to obtain a result 4.5 times greater than the other settlement. Second, after the defendants lost the issue of class certification at the trial court, they appealed to the United States Court of Appeals for the Second Circuit. Although the Appellate Court reversed a part of the certification order on a procedural issue, the Court found in plaintiffs’ favor on several critical issues of first impression—a ruling that should help investors in the future.
NPR partners Jeff Angelovich, Brad Beckworth and Susan Whatley led the prosecution of this case.