Securities Fraud and Corporate Governance Class Actions


As Nix, Patterson & Roach, L.L.P. (“NPR”) has grown, we have had the opportunity to represent several state and local government entities on a contingent basis. Through this representation, we have obtained historic recoveries for our clients, including a $17 billion recovery for the State of Texas in the Texas Tobacco Litigation and the second largest Qui Tam recovery in an oil and gas royalty case.

Our work in these and other cases led us to begin helping our public and private clients recover monies lost due to securities fraud and corporate governance failures. Today, we are one of the nation's leading firms in the representation of public and private investors in securities fraud and corporate governance litigation. NPR partners Brad Beckworth and Jeff Angelovich oversee the firm's securities and corporate governance practice.

Our securities fraud and corporate governance litigation was built upon our diverse foundation of trying everything from simple personal injury cases to highly complex commercial business disputes. There are not more than a handful of firms in the country that possess the trial experience or financial resources of NPR. As a result, our institutional investor clients are able to draw upon this unprecedented level of experience and resources to obtain a level of representation that is truly unique.

Portfolio Monitoring

Each and every day, we conduct comprehensive, computer-based portfolio monitoring services for each of our institutional clients. Through this free service, we are able to help our clients watch out for significant events that may affect their portfolio as a result of corporate fraud or malfeasance. We use this system to report to our clients when they have suffered a loss as a result of apparent fraud and to help them evaluate their options and duties in addressing such losses.

When we monitor each client's portfolio, we are always mindful that they are not in the "litigation business." Our clients have many duties to their beneficiaries that have nothing to do with litigation. Litigation is, and should be, an option of last resort. Therefore, we are extremely careful in evaluating each significant loss to determine whether it came as a result of real fraud. Even when we believe a client has suffered material losses as a result of real fraud, we are always mindful of each client's philosophical and policy interests as well.

Quality­, Not Quantity

Additionally, the diversity of our firm and our significant resources allows us to be highly selective in the types of cases we handle. Our clients have the added benefit of knowing that our firm is not dependent upon filing a high volume of cases. They know our focus is on the quality of representation, not the quantity of cases in which we are involved.

Our approach stands in stark contrast to many firms whose business is largely dependent upon securities fraud litigation. As a result, they encourage their clients to become involved in a large number of securities fraud cases simply to improve their own firm's bottom line. While this is not meant to be a criticism of any other firm, we believe it is a unique characteristic that sets us apart from our peers.

The bottom line is this: each of our clients knows that we will only recommend that they become involved in litigation when it is unequivocally in the client's best interest. As a result, we are able to provide unparalleled, unbiased, and focused service to our clients.

When it is necessary for our clients to turn to litigation, they know they are able to draw upon our unprecedented level of experience and resources to obtain a level of representation that is truly unique. We are a firm of trial attorneys dating back to 1967. We have a diverse range of trial experience. There are not more than a handful of firms in the country that possess the trial experience or financial resources of NPR. Our opponents know that we can and will take them to trial if necessary.

Representative Cases

The following cases stand out as particularly representative of the unique and "hands on" strategy we employ in securities fraud and corporate governance litigation:

In re Delphi Corporation Securities Litigation

As Lead Counsel for its client, the Oklahoma Teachers' Retirement System, NPR secured settlements valued in excess of $320 million, including one of the largest contributions to a securities fraud settlement by a bankrupt entity in U.S. history. In addition to the magnitude of this recovery, this case is significant and representative of NPR's litigation philosophy in that NPR attorneys aggressively pursued all aspects of this case and Delphi's bankruptcy case. For example, we sought and won a modification of the PSLRA discovery stay. Further, NPR partners Brad Beckworth and Jeff Angelovich conducted a summary trial in bankruptcy court to fight Delphi's efforts to give bonuses to the very executives at the heart of the alleged fraud in this case. Through these aggressive maneuvers, we were able to secure an incredible recovery.

In re Brocade Securities Litigation

NPR is leading this options backdating case on behalf of the Arkansas Public Employees Retirement System. We were prosecuting this case long before the recent media headlines and outrage regarding options backdating had begun. The trial court upheld our APERS' complaint against former Brocade CEO Greg Reyes - marking the first time such a complaint had been sustained for options backdating. Months later, the court accepted NPR's arguments that the recent United States Supreme Court holding in Tellabs actually lowered the scienter pleading standard in the Ninth Circuit and, as such, upheld the complaint as to certain former members of Brocade's Board, including Silicon Valley attorney Larry Sonsini. Just as in the Delphi litigation, NPR has aggressively pursued the defendants beyond the core litigation. For instance, when Brocade and its lawyers attempted to secure favorable releases to the detriment of Brocade's shareholders in a derivative case, NPR objected on behalf of its clients in the parallel derivative litigation. This objection caused the derivative plaintiffs to withdraw their proposed settlement, keeping intact certain valuable rights Brocade has against the people that may have helped with, or been involved in, the improper conduct. The trial court has certified this case to proceed as a class action and we are actively preparing this case for trial. This case has been featured in several prominent articles, including an article in The Wall Street Journal that won the Pulitzer Prize.

Warmack-Muskogee Limited Partnership, et al. v. PriceWaterHouse Coopers, L.L.P., et al.

NPR's efforts to remedy corporate wrongdoing are not limited to securities fraud litigation. Rather, the firm's broad experience allows representation of victims of corporate malfeasance in whatever form it may take. For example, NPR led the successful prosecution of the largest accounting firms in the United States, alleging that these firms fraudulently over-billed their clients in excess of one hundred million dollars for travel-related expenses. In this case, NPR obtained $108 million in cash relief for our clients. Plus, we made the accounting firms agree that, absent return of the rebates to their clients and/or full disclosure, these firms will not participate in the conduct giving rise to the litigation for a period of 5 years.

If you would like to report conduct you believe constitutes securities fraud, please provide the information to us via our report fraud form.

If you would like to talk to us about our portfolio monitoring services or any aspect of the services we provide for our clients, please contact Brad Beckworth or Jeff Angelovich.