Securities and Commodities Litigation

A Tailored, Strategic Approach to Securities Litigation

Because we understand the legal and financial issues that are at the heart of securities cases, we do not take a one-size-fits-all approach to securities litigation, instead applying our expertise to determine how best to litigate these often complex cases in the most effective ways possible.

Milbank's Securities and Commodities Litigation Group represents issuers, underwriters, broker-dealers, investment advisers, accounting firms and individuals in complex litigation under the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and other federal and state laws in class, individual and derivative litigation around the US. We resolve these complex cases at all phases, including motions to dismiss, opposing class certification, summary judgment and, when appropriate, we take securities cases to trial. Our securities litigators are backed by our market-leading broker-dealer regulatory teams and an exceptionally strong white-collar criminal defense and Securities and Exchange Commission enforcement team led by partners who are former Assistant US Attorneys from the Southern District of New York. We are uniquely positioned to handle securities-related civil, criminal, SEC and self-regulatory investigations and litigations.

deep commitment to achieving our clients' objectives

We recognize that no two cases are ever the same, and we devise a tailored strategy for each matter to secure the best outcome possible for our clients:

• Sometimes that means fighting for early dismissals of cases and then defending those dismissals on appeal. For example, we achieved quick dismissals of 1933 Act class-action claims for underwriters in cases relating to offerings by Regions Financial Corp. (a leading regional banking company) and Novagold Resources Inc. (a large North American precious metals company). And we represented NYSE Group, Inc. in a putative class action brought by members of the National Association of Securities Dealers, Inc. (now known as the Financial Industry Regulatory Authority) to challenge the creation of FINRA. We successfully achieved the dismissal of that case twice (the first time just 57 days after the case was filed) and both times the result was upheld by the US Court of Appeals for the Second Circuit. On behalf of The Capital Group Companies, Inc., Capital Research and Management Company and American Funds Distributors, Inc., we twice achieved the dismissal of class claims under the 1933 and 1934 Acts because those claims were time-barred.
• Sometimes that means fighting to limit the scope of a securities case by challenging the plaintiffs’ efforts to have a class certified, including pursuing appellate review of class certification orders, and we have deep experience litigating the merits of whether classes should be certified. For example, we represented Citigroup Global Markets Inc. in a securities class action brought against CGMI as the lead underwriter of the $630 million initial public offering of FLAG Telecom Holdings Ltd. After the district court certified a class, we petitioned the US Court of Appeals for the Second Circuit to review that decision, resulting in a decision that eliminated the vast majority of potential claims against CGMI.
• And sometimes that means actually taking securities cases to trial. We have tried civil and criminal securities cases to verdict and regularly try securities-related cases before FINRA arbitration panels. Most recently, we took to trial a case against Capital Research and Management Company and American Funds Distributors, Inc. alleging that the management fees paid by eight of the American Funds to Capital Research were excessive—the plaintiffs sought to recover $15 billion. We tried the case in a two week bench trial that resulted in a ruling in our clients’ favor; the case was one of the largest securities cases ever tried and was the first mutual fund securities case to go to trial in more than 20 years.

We apply the knowledge that we have accumulated by litigating securities cases for decades throughout our offices and are able to bring that knowledge to bear for clients around the world. We regularly represent foreign clients in US securities litigations and cross-border litigations, and we counsel clients around the world on securities-related issues.